Dogecoin price targets $0.31 as bullish trend risks $31.85 million in short liquidations, fueling a potential short-squeeze move.
Dogecoin (DOGE) price surge continues with a 2.24% intraday rally, reaching the $0.2096 mark. The bullish trend in Dogecoin targets $0.31 as short liquidations cross $6 million in the last 24 hours. If the bull run continues, a 2% additional move risks shaking out $31.85 million worth of bearish positions. Will this lead to a DOGE price jump to $0.31?
Dogecoin Price Targets $0.31 With Pattern Breakout
Dogecoin price rally gains momentum with its fifth positive day, accounting for almost a 30% surge. The technical chart reveals a rounding bottom breakout, as the DOGE price rally surpasses the $0.20 supply zone.
Dogecoin fell nearly 75% from $0.4846 to $0.1298 between December 8, 2024, and April 7, 2025, in 120 days. However, a bullish curvature under $0.20 led to a rounding bottom pattern. On May 9, DOGE price marked a conclusive breakout with a daily closing price of $0.2049. The 55% estimated rounding bottom breakout rally is estimated by adding its depth to the neckline breakout point, targeting $0.3159.
The meme coin rally has flipped the Supertrend Indicator with a $0.1863 breakout, signaling a new uptrend in motion. Additionally, the rising MACD and signal lines regain positive alignment after a few minor volatility-driven fake-crossovers. Thus, the technical indicators bolster the bull run chances for Dogecoin.
Retracing Fibonacci levels over the 75% DOGE downfall highlights the 50% level at $0.3040. The Dogecoin price prediction of $0.31 forecasts the 50% level breakout, hinting at a potential bullish extension.
On the flip side, a pullback under the $0.20 psychological level will undermine DOGE’s upside potential to $0.31. A $0.20 breakdown will put the $0.1411 support level on bearish radars.
Bullish Narrative Pumps DOGE Open Interest to 30-Day High
Amid the skyrocketing DOGE prices, sentiments surged in the derivatives field, as Open Interest (OI) hit $2.29 with a near 10% jump. The OI spike has recovered the lost ground during the tariff-driven downfall, a reflection of renewed traders’ interest.
Furthermore, the OI weighted funding rate at 0.0106% spikes to a 30-day high, maintaining an overall positive flow since early April. Hence, it projects a heightened bullish intent of Dogecoin traders.
$31.85M Liquidation Risk Teases Short-Squeeze Move
With Dogecoin sustaining above $0.20, the risk of increased short liquidation grows. According to Coinglass, a near 2% surge to $0.2135 will shake out bearish positions worth $31.85M, potentially leading to a short-squeeze driven DOGE price rally.
Hence, bulls anticipate further gains as Dogecoin sustains momentum, increasing short liquidation risk.
