- Dogecoin forms a textbook symmetrical triangle, with traders anticipating one last dip before a potential upside breakout.
- Derivatives data show rising volume and options activity, with traders leaning heavily long and shorts facing liquidations.
- Market sentiment favors an upward move, but heavy long exposure also increases the risk of sudden price shakeouts.
Dogecoin (DOGE) is edging towards a critical stage both in the market and on derivatives trading where a breakout could be in the offing. The structure is under close attention of the traders, indicating the increasing pressure in the narrowing price range.
Symmetrical Triangle Signals Breakout Potential
Ali, a market analyst from X, noted that Dogecoin is forming a symmetrical triangle on the 4-hour chart. This formation, which has been compressing since mid-July, suggests price consolidation before an explosive move.
As of writing, DOGE trades near the lower boundary of this triangle. Historical trading behavior suggests a short dip toward the $0.21–$0.22 range could occur. Such a move would allow larger market participants to absorb liquidity from weaker hands before a possible upward break.
Fibonacci retracement levels strengthen this outlook. The 0.382 retracement near $0.208 aligns with projected support.In case DOGE targets above this range, the bullish pattern shall stay intact. But a decline below 0.20 can disregard the pattern and turn momentum in favor of 0.18.
Derivatives Data Reflects Heavy Trader Activity
The derivatives market provides additional insight into Dogecoin’s setup. Trading volume surged by 127.27% to $8.74B, showing strong speculative interest. In contrast, open interest fell by 4.93% to $3.46B, suggesting prior positions closed due to liquidations or profit-taking.
Options activity is also increasing, with volume up 50.29% and open interest climbing 32.91%. This shows growing demand for hedging and speculative strategies, with traders positioning for volatility.
Long/short ratios show heavy bullish bias. Binance accounts hold a ratio of 4.1706, while OKX traders are at 3.75. Among Binance top traders, long ratios are even higher, with accounts at 5.6667. This suggests a strong market tilt toward long positioning.
Liquidations Indicate Pressure on Short Sellers
Liquidation data further illustrates the current market tension. Over the last 24 hours, $18.27M was liquidated, with most pressure on short sellers. Long liquidations reached $13.53M, while shorts accounted for $4.74M, showing a consistent advantage for bullish positions.
Short positions also faced higher liquidation across shorter timeframes. Over 12 hours, $7.59M was lost by longs compared to $461K from shorts. Similarly, within 4 hours, shorts absorbed heavier losses, indicating bearish bets are being squeezed out.
This liquidation trend reflects a market leaning heavily bullish. However, such an imbalance can quickly shift if price momentum weakens. The immediate correction may cause long positions to reverse suddenly creating sharp corrections. Until that time, the overall bias is suggesting a potential breakout that can shoot to the levels around $0.28 to $0.30.
