Dogecoin (DOGE) Price Nears Critical Level as Short-Sellers Brace for a Potential Short Squeeze

Dogecoin (DOGE) is in a tricky situation. There are $766.45 million in bets against it, and if its price reaches $0.35, something big might happen.

Dogecoin might be in for a wild ride if it manages to break past a key price level.

Right now, there are about $766.45 million in bets against Dogecoin, and if its price reaches $0.35, it could trigger a short squeeze. This happens when traders who are betting against a stock or other asset are forced to buy it back, which can drive the price even higher.

In the case of Dogecoin, there are a lot of traders going short on the cryptocurrency, and they are mainly concentrated around the $0.32 to $0.35 range. So, if DOGE’s price manages to rise past $0.35, these traders will have to buy it back, which could push the price up even further.

This is a classic setup for a short squeeze, and if it gains enough momentum, it can create a chain reaction where the price keeps rising because of the increasing demand.

As a result, traders and investors are keeping a close eye on whether Dogecoin will be able to break through this key price level.

Those who follow Dogecoin's history will know that it is capable of making big moves.

In 2021, it saw its price jump by 800% thanks to excitement from retail traders, and in 2017, it had another rally where its price soared by 1,000%.

Elon Musk, one of DOGE’s biggest supporters, has also caused prices to spike in the past with his tweets. While his influence isn’t as strong as it once was, he could still play a role in DOGE’s next move.

However, before DOGE can repeat these big moves, it first needs to get past the $0.35 level.

Dogecoin wouldn't be where it is today without social media.

Platforms like TikTok and X (NYSE:PARA) (formerly Twitter) are filled with discussions about DOGE, keeping it in the spotlight and making it one of the most talked-about cryptocurrencies.

According to recent data, about 34% of social media mentions about DOGE are positive, while 58% are neutral. This indicates that people are paying attention to the cryptocurrency, but they’re waiting for something big to happen. If there’s a sudden wave of excitement, it could give DOGE the push it needs.

Unlike other cryptocurrencies, DOGE thrives on being fun and community-driven, which is a unique appeal that sets it apart from other coins and keeps it in the good graces of traders.

For traders, Dogecoin’s current situation presents both an opportunity and a risk. If DOGE does break past $0.35, it could present a big opportunity for those looking to make a profit. However, short squeezes also tend to make the market more volatile, and prices can drop just as quickly as they rise, so long-term investors need to be careful.

DOGE’s price is often driven more by hype and speculation than its real-world value, which makes its price very unstable, so it’s important to proceed with caution and not get carried away by the excitement.