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1 Billion DOGE Bought by Whale, $3M in Shorts Wipeout Creates ‘Sell Wall’

1 Billion DOGE Bought by Whale, $3M in Shorts Wipeout Creates ‘Sell Wall’

CoinspeakerCoinspeaker2025/08/05 16:00
By:By Parth Dubey Editor Julia Sakovich

Over a billion DOGE were scooped up by whales as the meme coin dipped below key support levels, triggering a $3 million short squeeze.

Key Notes

  • Over 1 billion DOGE were bought by whales in 24 hours, signaling major accumulation.
  • DOGE dropped below key EMAs, while short liquidations near $0.208 triggered a $3M wipeout.
  • The technical pattern shows DOGE in a bullish broadening wedge, with a long-term target of $1.40.

Dogecoin DOGE $0.20 24h volatility: 2.0% Market cap: $30.51 B Vol. 24h: $1.28 B saw a major shake-up in the past 24 hours, with 1 billion DOGE snapped up by whale addresses, according to analyst Ali Martinez. 

The aggressive accumulation comes as the meme token trades at $0.2009, down nearly 10% for the week and slipping below key support levels, including its 20-day EMA ($0.2129) and 50-day EMA ($0.2060), according CoinMarketCap data .

Derivatives Data Reveals Turbulence, But Also Opportunity

According to CoinGlass , DOGE’s derivatives volume surged 2.43% to $4.82 billion in the last 24 hours, a sign of escalating interest. However, the open interest in DOGE futures contracts shrank to $3 billion.

This coincided with a $3 million liquidation in short positions, as the price gravitated near $0.208, a key cluster identified by TheKingfisher as a “short squeeze zone.”

🚨 $DOGE Liquidation map on all leverage just dropped.

Biggest short liquidation cluster is building up around $0.2079. This is a massive magnet for price.

Most traders are blind to this. Smart money uses this.

Long liquidations are scattered, showing less concentrated pain to… pic.twitter.com/CkYjOCj6FQ

— TheKingfisher (@kingfisher_btc) August 5, 2025

DOGE Price Analysis: Wedge Pattern Hints at Long-Term Rally

DOGE is forming an ascending broadening wedge on the weekly chart, an often volatile but bullish pattern. Trader Tardigrade points out that the last wedge swing ranged from $0.22 to $0.48.

$Doge /weekly #Dogecoin is moving within an ascending broadening wedge.
The next target at the top of the wedge is set at $1.4 🔥 pic.twitter.com/j5eYJOvojX

— Trader Tardigrade (@TATrader_Alan) August 5, 2025

If history repeats itself, the next leg up could stretch to as high as $1.40. On the daily chart, DOGE is trading within an upward channel, now testing its lower support trendline, which aligns with the Bollinger Band lower boundary near $0.179.

1 Billion DOGE Bought by Whale, $3M in Shorts Wipeout Creates ‘Sell Wall’ image 0

Dogecoin Daily Chart with Momentum Indicators | Source: TradingView

The MACD remains bearish with a negative crossover, while RSI sits at 44.7, just shy of oversold territory.

The Chaikin Money Flow (CMF) is hovering at -0.01, suggesting capital outflows are tapering off. Together, these indicators reflect a market that’s cooling but not collapsing.

Whale Buys Meet Retail Hesitance

While whale activity often precedes major price shifts , retail investors remain cautious. The current “sell wall” effect, caused by large liquidations and profit-taking at resistance zones like $0.208 and $0.228, adds further overhead pressure.

However, any decisive move above these levels could flip sentiment quickly and trap over-leveraged shorts. But DOGE will still remain as one of the best meme coins to buy .

Whether DOGE rebounds toward its upper wedge resistance or continues its slow bleed will likely depend on whether whales continue to buy and if retail follows.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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