The price of DOGE has fallen by 32% in the past two weeks. The downtrend line indicates a bearish market.
However, recent price action suggests a possible bullish reversal as prices have surged 8% in the past 24 hours.
At press time, Dogecoin is trading at an average price of $0.1247. Its 24-hour trading volume is around $851.62 million, with a market cap of $18.03 billion.
Will social scale and development activities drive reversal?
Data from Santiment shows a surge in DOGE’s social volume and development activity.
The surge suggests that there is a renewed interest in the Dogecoin community. The surge in development activity could be a sign that Dogecoin-related projects are continually improving, which could attract more investors.
Liquidations and Short Squeezes
According to Coinglass’s Liquidation Map data, DOGE has seen several spikes in both long and short liquidations, indicating extreme volatility and a potential short squeeze.
This scenario could trigger a rapid price increase, as seen with the recent DOGE rally.
Moreover, the long-short ratio data showed a positive trend, indicating that long investors are in control of the market.
Buying pressure at this critical level could add to the bullish pressure on Dogecoin, sending the price surging.
