Dogecoin Price Surge to $0.35 May Trigger $2.26 Billion Short Squeeze

Analyst Ali Martinez indicates that Dogecoin (DOGE) may be poised for a significant price movement, potentially triggering a short squeeze. He notes that $766.45 million in short positions could be liquidated if DOGE rebounds to $0.35.

Key Points on Dogecoin Price Movement

Liquidation heatmap data shows substantial short positions clustered between $0.339755 and $0.34368.
Total potential forced liquidations amount to approximately $2.26 billion.
Understanding high liquidity areas is crucial as they can attract large trades and influence price swings during liquidations.
The current descending trendline presents resistance around $0.335 to $0.34.
A breach of this zone could lead to rapid buying pressure from short sellers covering their positions.
DOGE maintains support above the 0.382 Fibonacci retracement at $0.313.
The next key resistance level is the 0.5 Fibonacci retracement at $0.394.

Martinez's analysis suggests that a significant price action lies ahead for Dogecoin, contingent on overcoming resistance levels and market conditions.