Dogecoin (DOGE) may very well be on the cusp of a major value transfer which may ignite a robust quick squeeze, in accordance with analyst Ali Martinez (@ali_charts). He pointed out on January 27, by way of X, that “$766.45 million in brief positions can be liquidated if Dogecoin DOGE rebounds to $0.35,” implying that bearish merchants stand on precariously skinny ice.
Huge Dogecoin Quick Squeeze Incoming?
A take a look at the up-to-date liquidation heatmap from Coinglass reveals hefty quick positions clustered between roughly $0.339755 and $0.34368. Coinglass knowledge reveals $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 overall to round $2.26 billion in potential pressured liquidations.
That determine underscores the magnitude of a attainable short squeeze ought to DOGE climb above that tight vary. Coinglass describes its heatmap as a manner “to foretell the place liquidation ranges are prone to provoke,” and has additionally underscored that “liquidations play an important position within the cryptocurrency market” as a result of they’ll affect speedy value swings when merchants with massive leveraged positions are pressured to shut out.
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Coinglass emphasizes the worth of understanding “excessive liquidity areas,” since they’ll function magnet zones the place massive gamers, typically known as whales, seize the chance to execute sizable trades. Merchants typically leap on liquidation clusters at advantageous costs, which then paves the way in which for sharp reversals. Within the case of Dogecoin, that magnet zone is now sitting just under $0.35.
Martinez’s evaluation of DOGE aligns with the broader technical image, which suggests the token could also be at a make-or-break juncture. Since December 8, when Dogecoin briefly surged to $0.4834, the value motion has been outlined by a descending trendline. Though DOGE broke above this line on January 15, 2025—indicating a possible bullish shift—broader market volatility on January 26 shortly dragged it again under.
The result’s a state of affairs through which the descending line, now round $0.335 to $0.34, stands as a formidable barrier. A profitable breach of that zone may very well be pivotal, particularly given the sheer focus of shorts that Coinglass has recognized simply above it. Ought to DOGE rally sufficient to pierce that degree, merchants holding quick positions could also be pressured to cowl shortly, and that wave of shopping for stress can quickly speed up an upward transfer.
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In the meantime, DOGE stays above the essential 0.382 Fibonacci retracement close to $0.313, a assist degree that prevented additional draw back throughout the newest market sell-off. The following technical assist lies deeper on the chart, close to $0.212 (0.236 Fibonacci retracement), the place merchants can be watching intently for any signal of weakening momentum.
On the upside, the 0.5 retracement at $0.394 stays a key pivot. A sustained restoration above that threshold may spark higher bullish confidence, with potential resistance rising once more across the 0.476 to 0.592 area if Dogecoin can regain sufficient drive.
Featured picture created with DALL.E, chart from TradingView.com
