Dogecoin Price News: DOGE Nears “Big Squeeze Territory” – 150% Gain Possible

Dogecoin (DOGE) is the best-performing crypto in the top 10 in the past month, somewhat surprisingly, with gains of 22%.

The top meme coin has outperformed Bitcoin (BTC) by nearly 3x during this period, reflecting a strange appetite for exotic tokens.

Trading volumes have surged to 15% of the asset’s circulating market cap. This indicates strong buying pressure paired with an ongoing short squeeze.

DOGE Bears Got Squeezed Multiple Times in the Past Few Weeks

According to data from CoinGlass, the first major squeeze took place on April 28, as nearly $23 million worth of DOGE shorts were blown up in a single day. This was the highest wipeout of the past 6 months and was the result of a breakout above the $0.11 level.

Meanwhile, on May 3 and May 13, over $7 million worth of short positions also evaporated. These levels are significant for this token and confirm an ongoing squeeze.

That said, the strongest squeeze of all could still be ahead as DOGE is nearing a critical resistance at $0.12. If this price level is broken, the odds of a massive rally to $0.28 will rise dramatically.

Open interest (OI) for DOGE futures has also been steadily increasing lately, moving from a recent low of $894 million to $1.76 billion – nearly a 100% increase in just 45 days.

We are still way down compared to the $6 billion peak we saw in September 2025, but this is a healthy indication, and possibly an early signal, that speculators are coming back to the market.

DOGE’s On-Chain Data Shows Interesting Rise in Active Accounts

Trading volumes picked up to $14 billion two weeks ago, but are still not meaningfully high. However, in past instances when DOGE has rallied, we have not seen steady increases in volumes.

Instead, volumes have exploded from one week to the next, providing little anticipation about what was coming.

Between March and April, we saw an interesting spike in Dogecoin’s active addresses that did not immediately result in a price recovery. We saw a spike in AAs back in June-July 2025, right before DOGE exploded.

This could be interpreted as whale activity or the presence of bots accumulating tokens ahead of a strong price spike. Considering that the price started to rise right after this “anomaly” and the fact that this has been a visible pattern before strong rallies, on-chain data seems to be favoring a bullish outlook for Dogecoin.

Weekly Buy Signal Sets the Stage for Massive Rally for Dogecoin

Heading to the weekly chart, DOGE has closed the last five weeks with gains. As we highlighted in a previous Dogecoin price prediction, a massive buy signal that has historically yielded strong gains popped up in this higher time frame recently.

Three out of four times that the Relative Strength Index (RSI) dipped below the 40 level, the price rallied strongly, delivering gains ranging between 94% and 415%. A 75% win ratio makes this a great setup for a swing trade.

In all of these three instances, the ideal entry came after the RSI rose above the signal line. That has already happened this time, which is why we expect a strong move over the next few weeks.

However, we still need DOGE to clear the $0.12 barrier to force a major squeeze. That liquidity should first push the token to the 200-day exponential moving average (EMA) at $0.145, and potentially fuel the rally toward $0.28.

Here’s How Traders Could Capitalize on a Breakout Above $0.12

Heading to the daily chart, we can see that the price has already retreated after hitting the $0.12 level twice. This confirms the zone’s technical relevance and increases the odds of a much stronger pullback unless bulls gather enough ammunition to break through that ceiling.

It also increases the odds of a squeeze as a significant volume of stop orders tends to sit above those key levels. Meanwhile, a strong pullback is on the table at this point as well, but it won’t invalidate the rally necessarily.

The reason for this is that the daily RSI just hit extreme overbought levels. Since we are already seeing strong resistance at these levels, the odds of a big drop are high. If that happens, we could see DOGE declining to $0.10 again to raise the necessary liquidity for the next leg up.

Meanwhile, if we get a bullish breakout, the first target would be $0.13, followed by a strong move to $0.15. This gives us a great setup for a trading opportunity with an entry at $0.12 if a breakout occurs and with two clear take-profit targets.

This trade offers a 3x to 4x risk-reward ratio depending on how cautiously you set the stop price.

Buy Signals Piled Up Ahead of This Breakout

Our system picked up three “buy” signals during DOGE’s accumulation phase that are consistent with what we see in the daily active users chart. This confirms an ongoing accumulation back then, while the latest breakout and short squeeze are a result of rising buying pressure.

What this indicates is that the “smart money” identified the historical pattern seen in the weekly chart and acted on it. They are probably betting that DOGE will keep rising in the next few weeks, as it did 75% of the time that the RSI dropped below 40 in the weekly time frame.

The market is catching up, as reflected by rising open interest and DOGE’s strong spike in the past 30 days. The stage looks set for a massive rally, while we expect that the $0.09 was this cycle’s bottom.