- Dogecoin retests a long-standing support zone that previously triggered +9,227% and +13,337% rallies during past market cycles.
- A major short liquidation cluster around $0.2079 could fuel upward momentum, as bulls dominate with fewer risks to the downside.
- Derivatives volume and open interest surge, with long/short ratios showing strong market bias toward DOGE upside across leading exchanges.
Dogecoin (DOGE) has returned to a historically proven buy zone that previously launched massive bull runs. Market activity and price structure suggest the setup could be repeating.
DOGE Revisits Macro Support with a History of Parabolic Rallies
Dogecoin’s price is once again testing the lower boundary of a multi-year ascending channel that has served as a launchpad for its most aggressive rallies. According to chart shared crypto analyst Ali , each touch of this lower grey accumulation zone has sparked a parabolic move—+9,227% in 2017, +13,337% in 2021, and +243% between 2023 and 2024.
The current price action aligns closely with this recurring pattern. DOGE is pressing against the same lower support that whales have historically accumulated at before rallies. This area is widely referred to as Dogecoin’s “accumulation cradle.” The consistency of this market rhythm since 2014 strengthens the case for a possible continuation of the trend.
The chart suggests a breakout toward the midline of the channel could trigger a strong move. With DOGE currently hovering around $0.2221, the next resistance range lies between $0.25 and $0.26. Surpassing this range could set the stage for a run toward $0.36 and, in the longer term, a retest of the $0.73 high reached in 2021.
Liquidation Data Hints at Potential Upside Pressure
Another analyst, TheKingfisher, reports a major cluster of short liquidations building at $0.2079—a level now acting as a price magnet. This cluster forms because many traders have placed heavily leveraged short positions just below current price levels. As price moves upward, forced buybacks from short liquidations can accelerate upward momentum.
Meanwhile, long liquidation levels are dispersed, suggesting that there’s less concentrated risk to the downside. In an “all leverage” timeframe, these zones may be targeted in the coming weeks. Analysts point to this imbalance as a potential driver of bullish momentum if the price moves upward to trigger mass short liquidations.
This structural setup presents a scenario where smart money is likely positioning ahead of the next breakout. Traders monitoring liquidation heatmaps often use them to predict price targets, and the concentration around $0.2079 supports the case for upward continuation.
Derivatives Data Signals Strong Bullish Sentiment
According to CoinGlass, Dogecoin’s derivatives market is showing signs of intensifying speculative interest. Daily trading volume has jumped 32.20% to $5.13 billion, while open interest has grown by 8.86% to $3.30 billion. This increase indicates more capital flowing into DOGE futures and perpetual contracts.
Notably, the options market has experienced explosive growth. Options volume soared by 2,057%, and options open interest has risen by 92.39%. This sharp rise signals a wave of new leveraged bets, along with heightened use of options to hedge or speculate on major moves.
Long/short ratios further highlight bullish sentiment. On Binance, the account ratio is 2.90; OKX posts 3.15; and among top traders, positions are leaning over 3:1 in favor of longs. In the last 24 hours, short traders have lost $7.98 million, compared to $1.22 million in long liquidations—indicating bulls are currently dominating the price action.
