Dogecoin News Today: Whales Accumulate 9 Billion DOGE as Short Squeeze Looms Near $0.22

Dogecoin appears to be forming a high-probability short-squeeze scenario as large whale investors add to their positions and a significant portion of perpetual accounts hold short exposure near $0.22. Whale accumulation has driven the concentration of 9 billion DOGE within the $0.20–$0.21 range, creating a strong structural support band that could act as a catalyst for a rapid price increase if short positions are liquidated [1]. Additionally, approximately 66% of perpetual accounts are net short, with a concentrated short cluster at $0.22 holding roughly $2.82 million in leverage, further amplifying the potential for a squeeze [1].

On-chain and technical analysis suggests that the $0.20–$0.22 range is becoming a critical battleground. The dense cost-basis cluster at $0.20 indicates disciplined accumulation rather than a breakdown, while the short cluster near $0.22 represents a high-risk leveraged pocket. If the price breaks through $0.22 and triggers forced liquidations, it could create a rapid cascade effect, pushing the price toward $0.25 [1]. This dynamic is reinforced by the fact that approximately 1.35 billion DOGE were added by whale accounts in early August, raising their total holdings to approximately 27.65 billion, signaling deep conviction in the current price range [1].

A short squeeze typically occurs when a concentrated group of short sellers is forced to cover their positions after an unexpected price increase. In this case, the short cluster at $0.22 represents a compressed risk area where a small upward move could lead to a rapid cascade of buy orders as positions are liquidated. The presence of whale buying pressure and a strong support zone at $0.20 enhances the likelihood of such a scenario, as buyers are already defending the lower end of the range [1].

Traders are advised to closely monitor key liquidity zones between $0.20 and $0.22, as well as changes in leverage and funding rates in perpetual markets. Whale wallet flows also remain a crucial indicator, as large accumulations at current levels suggest long-term positioning. If the short cluster near $0.22 is triggered, the potential for a rapid move toward $0.25 increases significantly [1].

While the market is currently priced with a degree of expectation for a near-term catalyst, analysts caution that a short squeeze is not guaranteed and depends on broader market sentiment and macroeconomic conditions. However, the convergence of whale accumulation and leveraged short exposure at key price levels has elevated the probability of a meaningful price reaction [1].

The current on-chain and derivatives footprint for Dogecoin reflects a classic bear-trap setup, where concentrated buying and short selling positions create an asymmetric risk profile. As the market continues to evolve, the $0.20–$0.22 range remains a focal point for both bulls and bears. A breakout from this range could mark a significant turning point in the near-term price action for Dogecoin [1].

Source:

[1] Dogecoin Could Be Poised for a $0.25 Squeeze as Whales Accumulate and Short Positions Cluster (https://en.coinotag.com/dogecoin-could-be-poised-for-a-0-25-squeeze-as-whales-accumulate-and-short-positions-cluster/)