Dogecoin (DOGE) May Signal a Bear Trap Amid Recent Volatility and Renewed Investor Interest

Dogecoin is once again capturing the attention of traders, indicating a potential resurgence in market activity.

Dogecoin [DOGE] is barking back into the spotlight. After soaring to a three-month high of $0.259 on May 11th, it has pulled back nearly 14% in under a week, drawing attention from opportunistic traders. Over $14.17 million in long liquidations indicates that bears are currently in control, aggressively hunting overleveraged positions. However, this sharp correction may signify more than mere weakness; it could be a strategic setup for the next trading cycle.

From bark to bite: DOGE shakes out the weak hands

DOGE’s impressive double-digit pullback can be attributed to a mix of macroeconomic headwinds and on-chain dynamics. At the macro level, risk capital is being reallocated towards stocks, placing crypto into a “pause and digest” phase. Concurrently, Bitcoin [BTC] is trapped in a narrow trading range, which is keeping DOGE on a tight leash.#MarketVolatility