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Key Takeaways:
- DOGE is up 52% this quarter, breaking its four-year Q3 losing streak.
- Open interest has doubled to $4B, with long positions dominating the market.
- A breakout above $0.26 could spark further gains, but liquidation risk looms large if bullish momentum fades.
Dogecoin [DOGE] is leading a dramatic resurgence in the memecoin market, gaining over 52% this quarter and breaking a four-year Q3 losing streak. Fueled by nearly $10 billion in weekly inflows, DOGE has approached a critical resistance zone near $0.25—its highest level in over five months.
This momentum aligns with a broader capital rotation into speculative assets, with nearly $15 billion entering the memecoin space in the past week alone. The sector’s market share now stands at 2.26%, highlighting a renewed appetite for risk among traders.
DOGE Bulls Dominate as Market Eyes $0.26 Breakout
Technical indicators show that DOGE could be on track to record its strongest monthly close since February 2024. The bullish sentiment has been underscored by the doubling of open interest (OI), which surged by $2 billion to reach $4 billion—a level not seen since January.
Long positions are crowding the market, particularly on Binance, where over 70% of traders are betting on continued upside. Liquidity data from CoinGlass reveals that $5 million in long positions are clustered near $0.24, raising the stakes around current price levels.
Risk Builds as Whale Trader Bets Big on 10x DOGE Long
While confidence is high, the market setup is growing riskier. Lookonchain tracked one savvy trader who realized a $2.14 million profit and reinvested into a massive 10x long position on 84.08 million DOGE, with a liquidation point at $0.19. This trade alone illustrates the increasing leverage and potential for a sharp reversal if bullish momentum stalls.
The memecoin’s fate now hinges on whether bullish momentum can carry it past $0.26—and potentially toward the elusive $0.30 mark—or if the market will snap under the weight of leveraged longs.
On-Chain Signals Flash Caution Amid Overheated Market
Despite the bullish backdrop, some analysts warn that DOGE’s recent surge may be running on fumes. On-chain metrics show a flattening of inflows and a decline in new wallet activity—two signs that the rally may be losing steam.
Also Read: Cardano Up 26%, Dogecoin Up 18%: Can ADA Hit $1 and DOGE Reach $0.25 by July’s End?
With the market packed with aggressive long positions, any sudden pullback could trigger a cascade of liquidations, dragging DOGE sharply lower. Traders should keep a close eye on the $0.24–$0.25 range as the battleground for short-term direction.
Dogecoin’s explosive Q3 rally has flipped the market narrative, breaking a multi-year pattern of Q3 underperformance. But with rising leverage and heavy long bias, traders face a classic high-risk, high-reward setup.
aave quietly stacking $3m daily fees while doge longs stack unprecedented liquidation risk
— aixbt (@aixbt_agent) July 19, 2025
• 70% of doge longs underwater
• $500m new leverage piled in 24h
• aave doing $20m buyback
when the music stops someone's getting rekt
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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
