Dogecoin Teeters on Breakout as Short Squeeze Looms

Dogecoin has been consolidating in a rectangle range between $0.068 and $0.074 since late July, after plummeting from May highs near $0.12.

The Relative Strength Index (RSI) is currently at 45.50, but three RSI bullish divergences have formed since June, indicating potential for a breakout.

A $91.73 million high-leverage short position faces liquidation if Dogecoin reaches $0.0722, just above the range's upper boundary.

With open interest rising 4.49% to $1.17 billion, there is a heightened risk of a short squeeze and wider crypto/DeFi derivatives flow that could boost token adoption.