Nearly 1% of $1.65B DOGE OI at Risk of Liquidation at this Key Level
By: bitcoin ethereum news|2025/05/06 18:00:02
0
Share
Dogecoin (DOGE) is at $0.17, witnessing an intraday pullback of nearly 1%. However, the meme coin prepares for a bounceback with a falling wedge pattern, increasing the possibility of shaking out short-sided traders. Holding its ground near the $0.17 mark, Dogecoin prepares for a high-momentum move. With bullish traders eyeing the Dogecoin price to hit $0.20, the key question remains: will this recovery rally liquidate nearly 1% worth of $1.65B DOGE open interest? Dogecoin Price Analysis Hints at a 14% Falling Wedge Breakout Rally The Dogecoin price action reflects a declining trend in motion in the 4-hour timeframe. Since April 23, the swing lows formed in Dogecoin connect to form a support trendline. However, the bullish failure to create new swing highs has led to an overhead resistance trendline. The converging trendlines gave rise to a falling-wedge pattern, hindering the current DOGE price trend. At present, the Dogecoin price tests the lower boundary line of the falling wedge pattern with a lower price rejection. This hints at the possibility of a new upswing within the pattern. The MACD and signal lines support the upside chances as the average lines prepare for a positive crossover. Furthermore, Dogecoin is preparing to take off as it takes lower price rejection from the 200 simple moving average line. The prevailing correction within the falling wedge pattern has led to the breakdown of the 50 and 100 SMA lines. This increases the possibility of a negative crossover between the average lines, potentially triggering a sell signal. Based on the Fibonacci levels, a potential breakdown will likely result in a retest of the 38.20% Fibonacci level at $0.1560. However, a bullish comeback in Dogecoin, surpassing the overhead trendline, will likely pump prices by more than 14% to reach the $0.20 psychological mark. Derivatives Data Warns of a Short Squeeze As a falling wedge pattern holds Dogecoin, the sentiments in the derivatives market are gradually turning positive. As per Coinglass data , long positions have surged to 51.83% in Dogecoin derivatives in the past 4 hours. This has marginally turned the long-to-short ratio bullish at 1.076. As the long positions continue to surge, the Dogecoin volume-weighted funding rate is on the verge of flipping positive. After momentarily dipping into negative territory, the Dogecoin funding rate is now at 0%. With the growing bullish confidence in the derivative market, the funding rate is likely to flip positive, reflecting bulls willing to pay a premium to hold long positions. Furthermore, the Dogecoin exchange liquidation map by Coinglass reflects high risk for short position holders. If the Dogecoin price gives a bullish breakout, an uptrend to $0.1735 will likely liquidate $14.18 million in short liquidations. This could result in a short squeeze, further fueling the uptrend in DOGE price. Thus, it could fuel the Dogecoin price prediction of reaching the $0.20 mark. Will Dogecoin Price Rally Suffer Due to 96M DOGE Token Unlock? The short-term price movement and derivatives data signal a potential bullish move ahead. However, the meme coin will witness a minor surge in supply with token unlocks this week. As per the tokenomist data , Dogecoin will witness an unlock of 97.89 million DOGE tokens worth $16.57 million in the next 7 days. This accounts for 0.07% of the entire circulating supply of Dogecoin, registering a minor supply spike. However, the linear nature of the token unlock is unlikely to lead to any sharp correction moves. Frequently Asked Questions (FAQs) A successful breakout from the wedge could push DOGE price up by over 14% to reach the $0.20 psychological level. Long positions have risen to 51.83%, and funding rates are on the verge of turning positive, signaling rising bullish sentiment. The unlock is linear and only 0.06% of circulating supply, making a sharp correction unlikely. ✓ Share: Coingape Staff CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/markets/dogecoin-price-forecast-nearly-1-of-1-65b-doge-oi-at-risk-of-liquidation-at-this-key-level/
You may also like

More brutal than a bear market, OpenClaw founder advises young people to stay away from crypto
This is not just a disdain for financial nihilism, but also a migration of talent, capital, and attention that is currently happening.

JPMorgan and Goldman raise gold price targets; will on-chain finance welcome a new reserve asset cycle?
Wall Street giants adjust gold price expectations, Matrixdock proposes the concept of Reserve Layer: tokenized gold XAUm, with its institutional-grade compliance structure, is evolving into the underlying reserve asset of on-chain finance.

dFans: OnlyFans of the AI Era
As the industrialization capability of AI video matures, the "industrialization singularity" of AI content creation has arrived. Tools like OpenAI, Google Veo, and Runway have achieved controllable creation, significantly lowering the barriers to content production. AI content creators are emerging ...

Tron Industry Weekly Report: Geopolitical Turmoil Escalates, BTC Continues to Test $60,000, Detailed Explanation of the Protocol Konnex for AI Autonomous Collaboration and Settlement on the Chain
TRON Industry Weekly Report
From CTA to AI: The Evolution of Adaptive Quant Strategies in Crypto Markets
Explore how an LLM-powered AI market-neutral trading strategy achieved a 2.75 Sharpe ratio with controlled drawdown. Inside crypto_trade’s adaptive hedging system at the WEEX AI Trading Hackathon.
How 30+ Global Sponsors Powered WEEX AI Trading Hackathon Into a $1.88M Carnival
Discover how 30+ global sponsors including AWS helped power the $1.88M WEEX AI Trading Hackathon, turning AI strategies into live crypto market competition.

Key Market Information Discrepancy on March 2nd - A Must-See! | Alpha Morning Report
1. Top News: Last Night's US-Iran Situation Recap, Iranian High-ranking Officials Killed, Over 200 Ships Stranded in the Strait of Hormuz
2. Token Unlock: $ENA

Iran Missile Strike in Dubai: Three Chinese Nationals Tell Their Story 48 Hours Later
The sound is still in the distance, so the days can still go on.

72 Minutes Before Attack, Six Mysterious Accounts Raked in $1.2 Million
These accounts were all registered in February, with most of them making their first deposit within 24 hours before the attack, and they have no other transaction history. Their behavior closely resembles insider trading.

How to Preserve Life and Wealth in Turbulent Times | Bill It Up Memo
In times of chaos, only through diversified allocation and keen observation can one preserve wealth and life in the face of great changes.

I have given up using OpenClaw
Instead of struggling with expensive and unstable AI assistants, it's better to use Claude to create a more stable, cost-effective, and understanding personal system.

WLFI is involved in insider dealings again? The banking license controversy under a $500 million investment
The UAE's investment in World Liberty Financial has intensified concerns about whether it receives special treatment and whether it involves national security issues.

Morning News | Iranian Supreme Leader Khamenei Assassinated; Kalshi to Refund Fees for "Will Khamenei Step Down" Related Market; Bitcoin Spot ETF Sees Net Inflow of $787 Million This Week
Overview of Important Market Events on March 1

The harvesting tactics of the quantitative giant Jane Street
Quantitative giant Jane Street has been accused of manipulating the liquidity and derivatives of markets such as the Indian stock market and Bitcoin, earning billions of dollars in the process.

Cryptocurrency ETF Weekly | Last week, the net inflow for Bitcoin spot ETFs in the U.S. was $787 million; the net inflow for Ethereum spot ETFs in the U.S. was $80.2 million
Top universities like Harvard have started to allocate to Bitcoin ETFs in their endowment funds.

WLFI at it Again? Banking License Controversy Amid $500M Investment
The UAE's investment in World Liberty Financial has heightened concerns over whether it received special treatment and whether national security issues are involved

The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.

Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
More brutal than a bear market, OpenClaw founder advises young people to stay away from crypto
This is not just a disdain for financial nihilism, but also a migration of talent, capital, and attention that is currently happening.
JPMorgan and Goldman raise gold price targets; will on-chain finance welcome a new reserve asset cycle?
Wall Street giants adjust gold price expectations, Matrixdock proposes the concept of Reserve Layer: tokenized gold XAUm, with its institutional-grade compliance structure, is evolving into the underlying reserve asset of on-chain finance.
dFans: OnlyFans of the AI Era
As the industrialization capability of AI video matures, the "industrialization singularity" of AI content creation has arrived. Tools like OpenAI, Google Veo, and Runway have achieved controllable creation, significantly lowering the barriers to content production. AI content creators are emerging ...
Tron Industry Weekly Report: Geopolitical Turmoil Escalates, BTC Continues to Test $60,000, Detailed Explanation of the Protocol Konnex for AI Autonomous Collaboration and Settlement on the Chain
TRON Industry Weekly Report
From CTA to AI: The Evolution of Adaptive Quant Strategies in Crypto Markets
Explore how an LLM-powered AI market-neutral trading strategy achieved a 2.75 Sharpe ratio with controlled drawdown. Inside crypto_trade’s adaptive hedging system at the WEEX AI Trading Hackathon.
How 30+ Global Sponsors Powered WEEX AI Trading Hackathon Into a $1.88M Carnival
Discover how 30+ global sponsors including AWS helped power the $1.88M WEEX AI Trading Hackathon, turning AI strategies into live crypto market competition.