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Dogecoin Consolidates – Is DOGE Setting Up a Bear Trap for $0.20?
By Ritika Gupta
June 29, 2025
Dogecoin (DOGE) has been consolidating within a tight range with repeated bounces off a key support level. The question on many investors’ minds is whether this compression phase is the calm before a volatility breakout or a setup for a bear trap targeting $0.20.
After spending the past week oscillating between $0.14 and $0.17, price action has been mirroring prior compression phases that have typically preceded sharp breakouts. The rebound at the start of the final week of Q2, which took place after bouncing off a key support zone last tested in early April, could potentially serve as a springboard for a push toward $0.20 if bulls regain momentum.
However, the current setup remains fragile. DOGE has seen three failed breakout attempts since topping out near $0.25 in early May, each of which was met with swift liquidations, suggesting weak follow-through from buyers. In fact, the recent drop to $0.14 marked the fourth consecutive lower low within a 60-day window, reinforcing the bearish market structure.
On the derivatives side, Binance’s DOGE/USDT perpetuals have revealed a striking 75% long dominance, underscoring strong trader conviction. Nonetheless, such heavily skewed positioning also amplifies the risk of another round of long-side liquidations. In other words, the likelihood of another liquidity sweep raises the possibility that DOGE may be setting up a classic bear trap.
DOGE’s recent price action offers more than just superficial volatility insights. The chart below illustrates that the 32% drop from its early-May high of $0.25 was not simply a technical pullback but rather a full-scale leverage flush. As seen, long liquidation dominance spiked to 96.29% as overextended bulls were forced to unwind.
What’s striking is that following this unprecedented sell-off, liquidation dominance cooled sharply, dropping to just 6.14%, indicating that the worst of the leverage bleed may be behind us. Moreover, DOGE didn’t collapse like it did in May when liquidation dominance peaked at 97.56% on June 21st. This resilience could signal that the market’s structure is stabilizing beneath the surface.
In this context, the current long bias might actually represent strategic accumulation rather than reckless leverage, potentially setting the stage for a classic bear trap with late shorts fueling a squeeze toward $0.20.
Source: ambcrypto.com
