Dogecoin Short Squeeze Looms as Bears Target Key Support
A large short bet on Dogecoin (DOGE) has been placed, with an entry price at $0.071 and liquidation around $0.07, yielding over 40% in profit. This aggressive move is adding pressure to a key support zone that DOGE has held for nearly two months.
A look back at DOGE's previous monthly cycles suggests that this bet may not be random. In June, the memecoin experienced a 28%+ correction, breaking its structure and triggering massive long squeezes.
The $DOGE/BTC ratio is showing little sign of rotation back into the memecoin, with the rising short leverage on DOGE looking strategic. However, the bulls don't seem to be playing along, as the 24-hour Long/Short Ratio has climbed to a multi-month high of 1.18.
The broader memecoin market is starting to pick up, with trading volume up 22% over the past 24 hours. This could set up a bear trap for DOGE, making that 40x short a high-risk bet.