DOGE price analysis: Is a short squeeze brewing above $0.072?

The price of DOGE hovers around US$0.0694 after continuing to fall, approaching the key support area of US$0.07. Despite recent weakness, prices are still holding on to key daily support in a narrow consolidation. This increases the possibility of liquidity-driven reversals. In addition, on-chain data shows that short clearing positions have accumulated within a range. This is seen as a decisive signal. So, can DOGE bulls hold on to support and use liquidity above to achieve a bullish recovery?

DOGE tests key support areas-can bulls hold on?

Dogecoin is still under pressure after falling below the resistance level of US$0.0916 and is currently trading in bullish orders in the high time frame of US$0.069 to US$0.075. This demand area has historically attracted buying interest and may determine whether DOGE will undergo a rebound correction or continue its decline. Although the overall market structure is short, if the order block is successfully held, the momentum may turn to buyers again.

DOGE currently trades within the high time frame bullish order block ($0.069 to $0.075). Previously, buyers had absorbed selling pressure here and triggered a strong rebound. Immediate resistance is around $0.080, followed by the key market structure level of $0.0916. Breaking through these levels would negate recent bearish structures and open the next upside target, close to $0.10 and $0.125. The MACD indicator is approaching a bearish cross and remains below the zero line, indicating that the momentum of the recent rebound has weakened. Unless buyers hold on to current order blocks, bearish pressure may continue in the short term. If the high-time-frame order block is decisively broken, it will negate the bullish demand area and expose DOGE to the next support level of US$0.058 to US$0.060.

Dogecoin clearing map shows increased short-squeeze potential

Dogecoin clearing map supplements bullish technical signals by revealing significant imbalances in leveraged positions. Data shows that in the range of US$0.072 to US$0.076, the cumulative short liquidation amount is close to US$100 million. This constitutes a major pool of liquidity above current prices. Therefore, if DOGE regains adjacent resistance areas, the forced liquidation of short positions may amplify buying pressure and accelerate the rebound.

At the same time, clearing liquidity below current prices has been significantly reduced. This suggests that most of the downside leverage has been cleared during the recent decline towards $0.0694. With few long positions left to liquidate under the current range, the possibility of a correction appears to be fading. This liquidity change is consistent with the potential "Swing Failure Pattern"(SFP) shown on the price chart: prices briefly fell below support to wipe out remaining seller liquidity, and then quickly recovered above $0.072. This will trap late entry bears and allow DOGE to target larger liquidity concentrations above. If buyers succeed in recovering that level, the resulting short squeeze could provide motivation for prices to move downward to a key resistance level.

What is the next step for dogcoin prices?

Dogecoin is approaching a critical juncture as technical structure and derivative data begin to converge. Although the memo is still below immediate resistance, continued consolidation above $0.0694 suggests buyers are trying to build a foundation after recent declines. Successful recovery of the resistance area of US$0.0722 to US$0.0731 will confirm a recovery in bullish momentum and increase the possibility of a short squeeze, which could push DOGE to US$0.0779 and US$0.0888. However, traders should pay close attention to how prices react near the current support area. A rapid recovery in prices after briefly falling below recent lows will verify the expected "Swing Failure Pattern"(SFP) and strengthen the bullish outlook. Conversely, a continued break below protected near-term lows would negate the pattern and expose DOGE to further downside risks before buyers regain control of the situation.