Dogecoin (DOGE) recorded its strongest growth quarter of the year with a 52.4% increase and record capital inflow, while also warning of potential risks as liquidity concentrates around $0.24.
The DOGE market has seen a strong increase in trading and new capital flows; however, signs of exhaustion appear as long positions cluster around a key resistance zone, posing the risk of a sudden deep correction.
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Nearly $15 billion in new capital has flowed into the memecoin market, pushing the ownership ratio to 2.26%.
A large capital inflow into DOGE of nearly $10 billion along with a more than 30% increase in a week reached a strong resistance level of $0.25.
Liquidity concentrated around $0.24 signals risk, with a strong correction phase possibly emerging.
What does the strongest quarterly increase of DOGE in 2025 mean?
According to reports from TradingView and Cryptorank, Q3 2025 is a breakout growth quarter with a profit of 52.4%, ending a four-year consecutive decline, opening new growth prospects for DOGE in the cryptocurrency market.
DOGE's ability to rise and maintain the price level above $0.26 in July may be a sign of entering a new bullish trend, reflecting the growing appeal of memecoins among investors today.
Could a large number of long positions put the exchange at risk of a breakdown?
Data from CoinGlass indicates that DOGE's Open Interest has doubled to nearly $4 billion, with over 70% of investors on Binance holding long positions, concentrating risk around the $0.24 area where liquidity is thick.
An overcrowding of long positions makes liquidity susceptible to sudden liquidation, potentially leading to a blow-off top phenomenon that could cause significant losses for leveraged investors.
Mark Kelly, CEO CoinGlass, July 2025
Analyst Lookonchain reported a case where a trader took profits of over $2.14 million but continued to maintain a 10x long position on 84.08 million DOGE with a liquidation point at $0.19. This reflects both growth opportunities and high risks posed by the current market.
What do on-chain data and market sentiment warn about DOGE's future?
New on-chain data from Santiment and social media sentiment analysis suggest that the current upward momentum of DOGE may be running out of steam, making the $0.30 target in July less likely.
We need to be vigilant against signs of exhaustion and concentrated liquidity, as the memecoin market is very prone to strong fluctuations due to the participation of high-risk investors.
Dr. Emily Tran, cryptocurrency analyst, July 2025
These factors indicate that investors need to be cautious with DOGE's hot rally, focusing on risk management and preparing for the possibility of a sharp correction in the short term.
Frequently Asked Questions
Can Dogecoin continue to maintain a quarterly increase of over 50%?
Based on trading data and capital flows, DOGE's Q3 surge is very impressive but shows signs of being overbought; investors should prepare thorough risk management strategies.
Why has capital flowing into memecoins increased significantly recently?
The surge in interest is driven by high profit expectations along with a risk-on investment trend stimulated by the bull market, according to CoinGlass report July 2025.
How do Open Interest and long/short ratios affect DOGE's price?
Increasing Open Interest along with a high long ratio may create a leverage effect, causing prices to rise rapidly but also making them prone to strong volatility when capital flows retract.
What does liquidity concentrated at the $0.24 price level mean for traders?
This is the point where many stop-loss and take-profit orders are triggered, easily leading to mass liquidations and sudden volatility in the market cycle.
What should investors do in the face of the risk of a blow-off top for DOGE?
Close monitoring of on-chain data and market sentiment is necessary, prioritizing reasonable portfolio allocation, avoiding all-in, and preparing an exit plan when signs of weakness appear.
Source: https://tintucbitcoin.com/dogecoin-quy-3-but-pha-len-030-usd/
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