Over a billion DOGE were scooped up by whales as the meme coin dipped below key support levels, triggering a $3 million short squeeze.
Dogecoin DOGE $0.22 24h volatility: 7.1% Market cap: $33.12 B Vol. 24h: $2.51 B saw a major shake-up in the past 24 hours, with 1 billion DOGE snapped up by whale addresses, according to analyst Ali Martinez.
The aggressive accumulation comes as the meme token trades at $0.2009, down nearly 10% for the week and slipping below key support levels, including its 20-day EMA ($0.2129) and 50-day EMA ($0.2060), according CoinMarketCap data.
Derivatives Data Reveals Turbulence, But Also Opportunity
According to CoinGlass, DOGE’s derivatives volume surged 2.43% to $4.82 billion in the last 24 hours, a sign of escalating interest. However, the open interest in DOGE futures contracts shrank to $3 billion.
This coincided with a $3 million liquidation in short positions, as the price gravitated near $0.208, a key cluster identified by TheKingfisher as a “short squeeze zone.”
🚨 $DOGE Liquidation map on all leverage just dropped.
Biggest short liquidation cluster is building up around $0.2079. This is a massive magnet for price.
Most traders are blind to this. Smart money uses this.
Long liquidations are scattered, showing less concentrated pain to… pic.twitter.com/CkYjOCj6FQ
— TheKingfisher (@kingfisher_btc) August 5, 2025
DOGE Price Analysis: Wedge Pattern Hints at Long-Term Rally
DOGE is forming an ascending broadening wedge on the weekly chart, an often volatile but bullish pattern. Trader Tardigrade points out that the last wedge swing ranged from $0.22 to $0.48.
$Doge/weekly#Dogecoin is moving within an ascending broadening wedge.
The next target at the top of the wedge is set at $1.4 🔥 pic.twitter.com/j5eYJOvojX— Trader Tardigrade (@TATrader_Alan) August 5, 2025
If history repeats itself, the next leg up could stretch to as high as $1.40. On the daily chart, DOGE is trading within an upward channel, now testing its lower support trendline, which aligns with the Bollinger Band lower boundary near $0.179.
Dogecoin Daily Chart with Momentum Indicators | Source: TradingView
The MACD remains bearish with a negative crossover, while RSI sits at 44.7, just shy of oversold territory.
The Chaikin Money Flow (CMF) is hovering at -0.01, suggesting capital outflows are tapering off. Together, these indicators reflect a market that’s cooling but not collapsing.
Whale Buys Meet Retail Hesitance
While whale activity often precedes major price shifts, retail investors remain cautious. The current “sell wall” effect, caused by large liquidations and profit-taking at resistance zones like $0.208 and $0.228, adds further overhead pressure.
However, any decisive move above these levels could flip sentiment quickly and trap over-leveraged shorts. But DOGE will still remain as one of the best meme coins to buy.
Whether DOGE rebounds toward its upper wedge resistance or continues its slow bleed will likely depend on whether whales continue to buy and if retail follows.
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