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Dogecoin Rally To $0.35 Could Trigger Massive Short Squeeze

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Dogecoin (DOGE) could be on the cusp of a significant price move that might ignite a powerful short squeeze, according to analyst Ali Martinez (@ali_charts). He pointed out on January 27, via X, that “$766.45 million in short positions will be liquidated if Dogecoin DOGE rebounds to $0.35,” implying that bearish traders stand on precariously thin ice.

Massive Dogecoin Short Squeeze Incoming?

A look at the up-to-date liquidation heatmap from Coinglass shows hefty short positions clustered between roughly $0.339755 and $0.34368. Coinglass data shows $464.8 million at $0.339755, $534.79 million at $0.34054, $503.97 million at $0.341325, $433.04 million at $0.34211, and $325.29 million at $0.34368, bringing the total to around $2.26 billion in potential forced liquidations.

DOGE Liquidation Heatmap
DOGE Liquidation Heatmap | Source: Coinglass

That figure underscores the magnitude of a possible short squeeze should DOGE climb above that tight range. Coinglass describes its heatmap as a way “to predict where liquidation levels are likely to initiate,” and has also underscored that “liquidations play a crucial role in the cryptocurrency market” because they can influence rapid price swings when traders with large leveraged positions are forced to close out.

Coinglass emphasizes the value of understanding “high liquidity areas,” since they can serve as magnet zones where big players, sometimes referred to as whales, seize the opportunity to execute sizable trades. Traders often jump on liquidation clusters at advantageous prices, which then paves the way for sharp reversals. In the case of Dogecoin, that magnet zone is now sitting just below $0.35.

Martinez’s analysis of DOGE aligns with the broader technical picture, which suggests the token may be at a make-or-break juncture. Since December 8, when Dogecoin briefly surged to $0.4834, the price action has been defined by a descending trendline. Although DOGE broke above this line on January 15, 2025—indicating a potential bullish shift—broader market volatility on January 26 quickly dragged it back below.

Dogecoin price
DOGE faces a crucial moment, 1-day chart | Source: DOGEUSDT on Tradingview.com

The result is a scenario in which the descending line, now around $0.335 to $0.34, stands as a formidable barrier. A successful breach of that zone could be pivotal, especially given the sheer concentration of shorts that Coinglass has identified just above it. Should DOGE rally enough to pierce that level, traders holding short positions may be forced to cover quickly, and that wave of buying pressure can rapidly accelerate an upward move.

Meanwhile, DOGE remains above the crucial 0.382 Fibonacci retracement near $0.313, a support level that prevented further downside during the latest market sell-off. The next technical support lies deeper on the chart, near $0.212 (0.236 Fibonacci retracement), where traders will be watching closely for any sign of weakening momentum.

On the upside, the 0.5 retracement at $0.394 remains a key pivot. A sustained recovery above that threshold might spark greater bullish confidence, with potential resistance emerging again around the 0.476 to 0.592 region if Dogecoin can regain enough force.

Featured image created with DALL.E, chart from TradingView.com



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Dogecoin Price Looks To Close January On A Positive Note, Will February Be Any Different?

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Dogecoin has managed to sustain a relatively positive position towards the end of January despite the intense volatility throughout the month. With January almost over and the Dogecoin price closing the month on a positive note, the next outlook is what lies ahead for the meme coin and whether Dogecoin investors can see a similar price trend in February. 

Dogecoin Price Performance In January

Dogecoin’s price movement in January was full of intense volatility. The meme coin opened the month trading around the $0.315 price level, having declined in the latter half of December. Interestingly, this opening price proved to be an important support level throughout the month, with Dogecoin repeatedly testing and bouncing off it in response to market fluctuations.

In terms of performance, Dogecoin’s price swings in January mirrored the turbulence seen across the crypto market, with significant manipulation playing a role in its trajectory. After starting the month at approximately $0.315, the meme coin trended upwards for the first seven days, in line with Bitcoin’s resurgence above the $100,000 price level.

This first upward movement saw the Dogecoin price reach $0.39 on January 7. However, it was short-lived, as the intense volatility mentioned above saw those gains erased within 48 hours. Following a rejection near $0.4, Dogecoin fell by about 19% in two days before eventually bouncing off support at $0.31. Interestingly, Dogecoin would come to retest this level two times within the next five days. 

The second retest of this support zone led to a strong 40% rally that pushed DOGE above the $0.40 resistance level again after multiple attempts. This upward momentum peaked with Dogecoin reaching $0.4313 on January 18.

However, this price high was met with another rejection, leading to a fresh downtrend. Dogecoin and many other cryptocurrencies witnessed a surge of outflows in capital rotation as many investors FOMOed on Donald Trump’s meme coin, launched on January 17. Despite this huge setback, Dogecoin once again found support at the $0.315 level, reinforcing its importance as a solid price floor.

What To Expect In February: Sustaining Momentum Or Facing A Reversal?

The euphoria surrounding Donald Trump’s election and meme coin has ended, the market seems to be cooling down, and Dogecoin has begun a gradual recovery above $0.31. As January draws to a close, the interest is on February to see if the memecoin can maintain its current momentum during the month or undergo another volatile movement within a range.

At the time of writing, DOGE is trading at $0.33, up by about 4.25% from its January open. According to historical price data from CryptoRank, the Dogecoin price has trended downwards in February more often than not. However, February 2024 proved to be a positive month for the meme coin, as it closed the month on a 50% gain from its open. A similar performance would see Dogecoin closing February around $0.5 if it were to close January at its current price. 

Dogecoin
A display of DOGE’s monthly performances | Source: Chart from CryptoRank

According to a crypto analyst, current market dynamics suggest DOGE will soon undergo a strong pump above the $0.4 price level. However, the most important thing right now would be for Dogecoin to hold above $0.315 and $0.3. Failure to hold above these levels could erase bullish momentum.

Dogecoin
DOEG trading at $0.32 on the 1D chart | Source: DOGEUSDT on Tradingview.com

Featured image from Unsplash, chart from Tradingview.com



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Dogecoin Still In Play As Price Gears Up For Another 600% Run Above $2

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Despite the recent Dogecoin pullback, crypto analyst Javon Marks has provided a bullish outlook for the foremost meme coin. According to m, DOGE’s price is gearing up for a move that could send it above $2. 

Dogecoin Gears Up For 600% Run Above $2

In an X post, Javon Marks predicted that Dogecoin could record a 600% price rally and surge above $2. This came as he provided some optimism despite the recent pullback, with DOGE dropping to as low as $0.30. He stated that the price action is “refreshing” because prices still look on track for another great bullish performance. 

Marks added that history suggests that another run of 600% or more could happen, sending the Dogecoin price above $2.28. In line with this, he remarked that the next wave can be historical. The analyst had previously alluded to DOGE’s historical performance when he predicted that the meme coin could rally above the 1.618 Fib extension, which is currently at $2.2. 

Dogecoin
Aligning patterns hints at 600% run for DOGE | Source: Javon Marks on X

Crypto analyst Trader Tardigrade also recently alluded to Dogecoin’s historical performance when he predicted its price could rally to as high as $20 in this market cycle. The analyst noted that Dogecoin experienced bull rallies after surpassing the previous candle body high in 20217 and 2021, with gains of 3,000% and 8,000%, respectively. Therefore, he remarked that DOGE could reach this $20 target if a similar pattern plays out again. 

However, in the short term, the Dogecoin price could still drop to as low as $0.26 before it records any parabolic rally to the upside. This is based on crypto analyst Behdark’s DOGE analysis, in which he explained that the drop to $0.26 is part of the C wave corrective move. Once the price correction is done, the analyst predicted that the meme coin could rebound to $0.50. 

DOGE Failed To Touch The Trendline During The Recent Drop

Crypto analyst Master Kenobi noted that the Dogecoin price failed to touch a trendline he highlighted on the charts during this latest drop. In line with this, he questioned if it meant that DOGE could still witness more pullbacks or a bullish reversal from its current price level. While he didn’t provide an answer, the analyst alluded to an earlier analysis, in which he predicted that DOGE could record a 3x price increase and reach $1.05 between February and March. 

Meanwhile, Dogecoin’s price action might have shifted from bearish to bullish following this recent pullback. In an X post, Trader Tardigrade stated that DOGE’s MACD bullish crossover was approaching on the 4-hour chart. He explained that this signals a short-term momentum shift for DOGE from bearish to bullish. 

At the time of writing, Dogecoin is trading at around $0.32, down over 8% in the last 24 hours, according to data from CoinMarketCap.

Dogecoin
DOGE trading at $0.33 on the 1D chart | Source: DOGEUSDT on Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com



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Ready To Rocket? Dogecoin Chart Hints At Major Gains Ahead

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Crypto analyst Ali Martinez (@ali_charts) has spotlighted a potential trend reversal for Dogecoin, revealing that the popular memecoin has flashed a bullish technical signal on its daily chart. According to Martinez, the TD Sequential indicator has presented a “buy signal,” suggesting a price rebound could be on the horizon.

Dogecoin Prints TD9 Buy Signal

The shared chart—spanning daily candlesticks of the DOGE/USDT pair—illustrates 10 days of downward price action. Dogecoin has retreated from previous highs near $0.4843 to trade at approximately $0.32, shedding around -35% over the past few days. The most recent candle on the chart is a long black (bearish) bar, reflecting notable selling pressure that pushed prices towards $0.3200.

Dogecoin price analysis
Dogecoin price analysis, 1-day chart | Source: X @ali_charts

“The TD Sequential presents a buy signal on the Dogecoin daily chart, anticipating a price rebound!” Martinez posted via X. At the core of Martinez’s observation is the TD Sequential, a widely respected technical tool among seasoned traders. Developed by market technician Tom DeMark, the TD Sequential aims to identify price exhaustion points and potential reversals in ongoing trends. It works by counting a series of consecutive candles in one direction.

The indicator typically monitors up to nine consecutive bearish or bullish candles. When a count of nine is reached during a persistent downtrend, it often flags a possible bullish turning point—referred to as a “TD9 Buy Signal.” Conversely, nine consecutive higher closes in an uptrend can signal a potential bearish reversal.

In more extended setups, the indicator can continue counting to 13, offering further confirmation, but the “9” signal itself often draws the most immediate attention from traders. On this Dogecoin chart, the TD9 number has just appeared, signifying that the daily downtrend might be reaching a point of buyer interest. Following a “9” candle, the sequence restarts at “1,” which can hint at the beginning of a new bullish setup, should the upcoming candles confirm the reversal.

Price Levels to Watch

The most crucial support zone lies at $0.313, the 0.382 Fibonacci retracement level on the daily chart. Maintaining a daily close above this level could reinforce bullish momentum if buyers respond to the TD9 signal. Any attempt at a rebound will likely confront initial resistance around $0.3400, where the downtrend line is located. A decisive break above this (black) line may validate the anticipated trend reversal.

While further out of reach, regaining ground in the $0.4000 region (0.5 Fibonacci level at $0.395) would be a stronger sign that Dogecoin has recovered from its downward spiral. Overall, Dogecoin is at a crucial spot. The TD Sequential’s “buy” setup does not guarantee instant upside, but it does historically serve as a reliable early warning of trend fatigue.

If bullish traders capitalize on this signal, Dogecoin could stage a price recovery toward mid-range resistances. In contrast, failure to hold the $0.3100 area might prolong the current downward cycle.

Dogecoin price
Dogecoin price, 1-day chart | Source: DOGEUSDT on Tradingview.com

Featured image created with DALL.E, chart from TradingView.com



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