Dogecoin (DOGE) surged 15.76% in a single day, reclaiming the $0.20 mark and erasing its weekly losses. The rally, largely fueled by whale accumulation of 140 million DOGE, ignited a massive 252% increase in trading volume, pushing it to $3.71 billion. However, DOGE now faces a crucial resistance at $0.25. Breaking past this level could trigger another leg up, but profit-taking might cap further gains.
#Dogecoin is forming a Triangle just before the next Surge 🔥$Doge seems to copy the previous cycle 🚀 pic.twitter.com/JrXmfjepc7
— Trader Tardigrade (@TATrader_Alan) March 3, 2025
DOGE Faces a Key Test at $0.25
DOGE’s daily chart highlights a retracement of over half of its post-election gains. While three consecutive lower lows raise concerns about a potential downtrend, technical indicators hint at a possible reversal. The Relative Strength Index (RSI) is hovering near oversold territory, suggesting a bounce could be on the horizon. Additionally, a bullish Moving Average Convergence Divergence (MACD) crossover signals strengthening momentum.
Global liquidity has played a key role in DOGE’s rally, with some analysts linking the surge to a “Trump pump.” Short sellers faced heavy liquidations amounting to $10.10 million, reducing overall sell pressure. Meanwhile, Open Interest increased by 10.57% to $2.03 billion, reflecting heightened speculative activity. However, weak spot demand raises concerns about the sustainability of the rally.
Will Bulls Maintain Control, or Is a Pullback Imminent?
Despite the sharp rally, DOGE has already retraced 7.66% from its peak, indicating growing sell pressure. A large red candlestick formation suggests increasing uncertainty. Futures traders are also beginning to exit positions, with Open Interest dropping over 4%, adding liquidity and heightening the risk of a long squeeze. If leveraged positions unwind, cascading sell-offs could drive DOGE back below $0.20.
Also Read: Dogecoin (DOGE) Whales Accumulate 24.46B DOGE – Is a Bullish Reversal Ahead?
For bulls to maintain momentum, sustained buying pressure is essential. If DOGE holds above key support levels, another surge past $0.25 could be on the table. However, a lack of fresh demand may open the door for bears to regain control. The next few trading sessions will be critical in determining DOGE’s short-term price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
