Dogecoin shows structural strength, forming higher lows and indicating a potential rise towards $0.6533. Current analysis reveals that top traders maintain strong positions despite cautious sentiment from retail participants.
Structural Uptrend of Dogecoin
Market analyst JAVONMARKS notes that Dogecoin has maintained a clear uptrend, forming consistent higher lows since the major correction from its 2021 peak. This pattern indicates further accumulation and purchasing strength even after periods of price retracement.
The price action broke out of a long downtrend during 2023 and 2024, marking a series of higher highs and higher lows. These structural changes suggest market positioning for continuation, especially in meme-driven assets that attract speculative demand.
This means a breakout level should be technically around $0.6533, which suggests a nearly 3x move from current levels. Fibonacci extension levels and the uphill trendline pattern support this view, with a longer-term level around $1.27 still in play if momentum continues to gain traction.
Derivatives Data and Market Sentiment
Dogecoin derivatives data reflect cautious behavior among retail participants, with trading volume falling by 47.88% to $2.53 billion. Open interest, however, remains steady at $3.33 billion, up by 0.07%, indicating that positions are being held rather than closed.
In the options market, open interest increased by 8.13% to $5.37 million while volume declined by 18.42%. This indicates that traders are looking ahead to future volatility but are not actively trading futures contracts at this time, signaling a strategic setup phase.
The 24-hour long/short ratio is 0.9818, indicating that retail traders are near-neutral. Conversely, Binance and OKX ratios are higher than 3.0, reflecting strong long positioning by larger and more sophisticated traders.
Liquidation Trends and Their Impact on Predictions
Liquidation data reveal that short positions are taking heavier losses across all timeframes, with $955,720 liquidated over the past 24 hours versus $872,220 for longs. This pattern indicates that upward price movements have repeatedly forced bearish traders to exit positions.
On shorter horizons, such as one-hour and four-hour windows, shorts continue to face greater liquidation pressure. This shows that upward spikes in price are triggering quick short squeezes in thin liquidity conditions.
With top traders holding strong long positions and retail traders remaining cautious, market structure suggests a potential move higher. If the ascending support holds, Dogecoin may test psychological checkpoints at $0.10, $0.25, and $0.50 before approaching the $0.6533 target.
In the current market conditions, Dogecoin is showing structural strength and the potential for growth, supported by derivatives data and liquidation trends. Investors continue to monitor the situation, considering the possibility of reaching significant price levels in the future.
