High-risk, high-reward setups are rapidly unfolding.
This week, nearly $15 billion in new capital flowed into the memecoin space. In fact, this surge has brought its total market share to 2.26%, marking a significant increase in speculative risk appetite.
Dogecoin [DOGE] is no exception. It has absorbed nearly $10 billion in capital inflows, while rising over 30% weekly, and has dropped to the critical resistance level near $0.25.
From a technical perspective, this quarter is expected to be the strongest for DOGE this year, with a gain of 52.4%.
More importantly, it ended four years of consecutive declines in the third quarter, indicating a change in market structure and that memecoins may enter a new bullish phase.
With less than two weeks left in the month, and bulls still holding their ground, will Dogecoin set a new monthly closing price above $0.26, the highest since February?
DOGE bulls are increasing, but is the bottom about to break?
In the past week, traders have poured nearly $10 billion into DOGE, and this momentum has not weakened so far.
Open Interest (OI) has doubled, increasing by nearly $2 billion, bringing the total Open Interest to $4 billion, a level that Dogecoin has not reached since January.
But this is not a bilateral bet.
On the Binance platform, over 70% of traders hold long positions, leading to increasing market risk. The 12-hour chart shows a liquidity cluster of longs established around $0.24, totaling about $5 million.
In fact, Lookonchain marked a savvy trader who has locked in a profit of $2.14 million, and he just converted a position of 84.08 million DOGE into a 10x long, with a liquidation trigger price of $0.19.
But does the market have enough momentum to continue rising, or are we just one step away from a series of illusions that could completely destroy leveraged participants?
On-chain traffic and analyst sentiment suggest that this move may be meaningless, as the first month of the third quarter is about to end, making the $0.30 target a low-probability endeavor.
