Key Takeaways
DOGE dropped below $0.20, and shorts are jumping in. Now there’s a big short liquidity zone building at $0.2079. Could this be the setup for a classic bear trap and breakout?
Dogecoin [DOGE] broke below the $0.20 level after a month of range-bound chop. The memecoin has retraced nearly 30% off the $0.28 local high, flipping the near-term bias bearish.
Notably, bulls defended $0.25 on the first leg down, then stepped in again at $0.20, marking two key support reactions post-top. Now, price is bouncing 10% off the lows, signaling some bid pressure returning.
Meanwhile, the DOGE/BTC ratio after nuking 27.5% over the last two weeks is finally printing green to start the week, hinting at a potential shift in relative strength.
Source: TradingView (DOGE/BTC)
To top it off, a top analyst flagged smart money loading up on the “dip”.
Whales absorbed over 1 billion DOGE in the last 24 hours, front-running the 5.03% flush to $0.19. That’s some serious bid-side aggression at local support, roughly $200 million in fresh inflows rotating into the large-cap.
The immediate reaction? A muted 0.50% intraday bounce. Not a breakout, but when stacked with the current market structure and rotation flows, it adds weight to the idea that bulls are building a base down here.
DOGE bulls might be setting a trap
DOGE’s current structure is bait for opportunistic shorts, with many looking to fade a breakdown and flip $0.20 into resistance.
The 70%+ short skew across major exchanges confirms the heavy bearish lean.
But that imbalance cuts both ways. The latest liquidation map lights up at $0.2079, where the largest short cluster is stacked, creating a textbook bear trap setup.
With that much short size parked in one zone, it only takes a small push to trigger cascading covers. If DOGE bulls rotate price into that pocket, the liquidations will do the heavy lifting.
Source: X (The Kingfisher)
That’s where DOGE’s whale flow, structural shift, and chart setup come into play. Bulls aren’t just holding the line, they’re setting traps.
If momentum holds, Dogecoin could flip $0.20 into a strong base, setting up a clean run toward $0.25 in the near term.