Whale Buys 1 Billion DOGE, Short Sellers Suffer $3M Loss—Could This Spark a Bull Rally?

Jakarta, Pintu News – On August 6, 2025, Dogecoin (DOGE) experienced a big move. According to analyst Ali Martinez, whale addresses were recorded buying up to 1 billion DOGE in a short period of time.

This aggressive accumulation action comes as the price of DOGE is trading around $0.2009 – down almost 10% on the week and now below important support levels, including the 20-day EMA ($0.2129) and 50-day EMA ($0.2060), based on data from CoinMarketCap.

Derivatives Data Reveals Turmoil in the DOGE Market – But Also Opportunities!

According to data from CoinGlass (6/8), Dogecoin (DOGE) derivatives volume jumped 2.43% to $4.82 billion in the last 24 hours, indicating increased interest from traders. However, open interest for DOGE futures contracts shrank to $3 billion.

Read also: Dogecoin Rises 2% as Analysts Highlight ‘Golden Reload’ Zone Boosting Bullish Outlook

This phenomenon coincided with the liquidation of $3 million worth of short positions, as the price of DOGE approached the $0.208 area – a zone identified by TheKingfisher as a “short squeeze zone”, where buying pressure could force short sellers to exit.

DOGE Price Analysis: Wedge Pattern Could Signal a Long-Term Rally

On the weekly chart, DOGE is forming an ascending broadening wedge pattern, a technical formation that is known to be volatile but potentially bullish.

Tardigrade traders note that the last move in a similar pattern took the price of DOGE from $0.22 to $0.48.

If history repeats itself, the next rally could push prices as high as $1.40.

Meanwhile, on the daily chart, DOGE is trading within an ascending channel and is currently testing the lower support line – which is also adjacent to the lower boundary of the Bollinger Band at around $0.179.

The MACD indicator is still showing bearish signals with a negative crossover, while the RSI stands at 44.7 – close to the oversold zone. On the other hand, the Chaikin Money Flow (CMF) indicator is perched at -0.01, signaling that capital outflows are starting to ease.

Overall, the current state of the DOGE market is cooling down, but it is not yet showing signs of a crash.

Read also: XRP Rebounds from Key Support — Is a Move to $3.40 Coming Next?

Whales Start Buying, Retail Investors Are Still Undecided

Although whale activity is often an early signal of big price moves, retail investors still seem to be cautious.

Currently, the “sell wall” effect due to massive liquidation and profit-taking at resistance zones such as $0.208 and $0.228 is creating additional pressure from the upside.

However, if DOGE prices are able to break convincingly above these levels, market sentiment could change drastically – potentially even trapping overly aggressive, highly leveraged short sellers.

Despite the short-term movement, DOGE remains one of the top meme coins worth keeping an eye on.

Whether the DOGE bounces towards the upper resistance of the wedge pattern, or instead continues its slow slide, will most likely be determined by the sustainability of the whale buying – and whether retail investors finally come in or remain on the sidelines.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinspeaker. $1B Doge Bought by Whale, 3M Shorts Wipeout Creates Sell Wall. Accessed on August 7, 2025