Dogecoin (DOGE) is at a critical stage in both the market and derivatives trading, where a breakout could be imminent. Traders are closely monitoring the formation of a symmetrical triangle, indicating increasing pressure in the narrowing price range.
Symmetrical Triangle Signals Breakout Potential
Ali, a market analyst from X, noted that Dogecoin is forming a symmetrical triangle on the 4-hour chart. This formation, which has been compressing since mid-July, suggests price consolidation before an explosive move.
As of writing, DOGE trades near the lower boundary of this triangle. Historical trading behavior suggests a short dip toward the [$0.21–$0.22] range could occur, allowing larger market participants to absorb liquidity from weaker hands before a possible upward break.
Derivatives Data Reflects Heavy Trader Activity
The derivatives market provides additional insight into Dogecoin’s setup. Trading volume surged by 127.27% to $8.74B, showing strong speculative interest. In contrast, open interest fell by 4.93% to $3.46B, suggesting prior positions closed due to liquidations or profit-taking.
Options activity is also increasing, with volume up 50.29% and open interest climbing 32.91%. This shows growing demand for hedging and speculative strategies.
Liquidations Indicate Pressure on Short Sellers
Liquidation data further illustrates the current market tension. Over the last 24 hours, $18.27M was liquidated, with most pressure on short sellers. Long liquidations reached $13.53M, while shorts accounted for $4.74M, indicating a consistent advantage for bullish positions.
Short positions also faced higher liquidation across shorter timeframes. Over 12 hours, $7.59M was lost by longs compared to $461K from shorts, illustrating a market heavily tilted toward bullish positions.
Despite the current bullish trend, such an imbalance can quickly shift if price momentum weakens. An immediate correction may cause long positions to reverse suddenly, creating sharp corrections. However, the overall bias suggests a potential breakout that could move toward levels around $0.28 to $0.30.
