Dogecoin Price Rises on Short Squeeze Fears and Descending Trendline Breakout
The Dogecoin price has shown signs of recovery after consolidating within a defined range. The memecoin defended its key support zone near $0.071, and buyers regained control following weeks of selling pressure. Momentum indicators are improving, hinting at a shift in short-term sentiment.
A potential short squeeze is emerging as liquidation data reveals a significant concentration of short positions between $0.075 and $0.081, above DOGE's current trading range. If Dogecoin breaks above the immediate resistance near $0.074, these leveraged short positions could begin to unwind.
The first hurdle for DOGE lies around $0.074-$0.076; a sustained close above this range would signal strengthening bullish momentum. On the downside, losing the $0.071 support zone would invalidate the current rebound setup and expose the meme coin to a deeper correction toward $0.069 or lower.