Bullish Dogecoin Traders Risk Squeeze as Price Remains Bearish

Dogecoin (DOGE) traders are becoming increasingly bullish, but this optimism may be misguided. Long positions have surpassed short positions on major derivatives exchanges, with some platforms reporting more than three long accounts for every short.

The top traders on Binance have a long-to-short ratio of 3.25, while users on OKX are even more aggressive, with a ratio above 3.6. However, this bullishness is not supported by price action, which remains bearish.

Dogecoin is trading well below all significant exponential moving averages, including the 20-day EMA at $0.073, the 50-day EMA at $0.076, the 100-day EMA at $0.085, and significantly below the 200-day EMA above $0.10.

The market is more susceptible to a long squeeze when positioning becomes this skewed while price stays low, which could lead to increased selling pressure and potentially accelerate the decline.