Dogecoin Briefly Hits $0.10 Thanks to $12.7 Million Short Squeeze, Can It Last?

After struggling to reach $0.10 for over a month, Dogecoin (CRYPTO: DOGE) broke through the barrier on September 22 thanks to a $12.7 million short squeeze. The surge was short-lived, however, as the buying momentum dissipated by the third day.

The price climbed to $0.106 before plummeting back down to $0.093, but Dogecoin still managed to post a 10% gain for the week. Despite this, it's still down 18% for the year and 57% over the past 12 months.

One of the key factors holding Dogecoin back is its lack of maximum supply. Miners generate approximately 5.3 billion coins each year, which can lead to around $500 million in new supply at current prices. This means buyers must absorb about $10 million of new supply weekly for the price to stabilize.

While a short squeeze alone cannot sustain the price, Dogecoin needs consistent buyers to stay above $0.10 through October. So far, demand has come mainly from leveraged long positions, which can lead to selling if the price starts to drop.