Is Dogecoin About to Hit $0.25 or Crash? Find Out the Wild Truth!

by
  • Short liquidations reached a stunning $387K, adding fuel to DOGE’s bullish fire.
  • MVRV and Open Interest trends give a thumbs up to continued price growth above $0.25.

Ah, Dogecoin—forever the underdog of the crypto world. Just when you thought it was doomed to forever limp along in its self-deprecating manner, it pulled off a bit of a coup. It broke out of its descending channel and—gasp—actually retested it as support. You might say that DOGE is starting to believe in itself. Currently, it’s prancing around at $0.2238, up by a measly 3.37% in the past 24 hours. Big whoop, right? Well, $0.25 is still the looming nemesis. It’s a level that’s tried to act as support but has since morphed into a wily supply zone. Will DOGE rise to the occasion, or is it simply playing dress-up as a “bull”? Stay tuned.

Now, should DOGE manage to break above $0.25 (which, let’s be honest, seems unlikely given its knack for dramatic comebacks and meltdowns), the next stop could be $0.35. However, if it doesn’t reclaim that level decisively, prepare for the inevitable: a short-term retracement, and possibly a pity party in the crypto forums.

Short liquidations reign supreme, creating bullish pressure

On May 18th, the short liquidations came in hot at $387K. That’s right—$387,000 worth of shorts got roasted. Meanwhile, the long liquidations barely made a dent at $65K. Looks like the bears got caught with their pants down, scrambling to exit their underwater positions. This mismatch is a classic recipe for a market-wide short squeeze, and, as we all know, nothing makes prices shoot up faster than a bunch of panicked shorts.

MVRV Z-score: Because who doesn’t love a low score?

At the time of writing, the MVRV Z-score for Dogecoin is sitting pretty at 0.94—well below the 2.5 threshold that usually signals overvaluation. This score is like a real estate agent telling you your property is “just about to appreciate.” It compares the market cap to the realized cap and offers some insight into the average profitability of holders. The takeaway here? With most DOGE holders not sitting on a mountain of unrealized profits, there’s little incentive for them to panic-sell. In layman’s terms, this is good news for the “hodlers” out there.

Why is DOGE raising volatility concerns? Spoiler: It’s about scarcity.

DOGE’s Stock-to-Flow Ratio has skyrocketed to an eye-watering 99.53, indicating a slowdown—or outright stop—in the growth of circulating supply. In plain English, this makes DOGE look rarer than your grandmother’s heirloom china. But here’s the catch: such a meteoric rise often signals either a massive rally or a crash landing. History has shown that spikes like this can precede both euphoric highs and gut-wrenching corrections. So, either way, something’s coming. Stay on your toes.

Network activity: Just another day in the Doge-verse

Back in May, DOGE’s daily active addresses hit a thrilling high of 500K, only to plummet to a dismal 28.6K. Talk about a “come down.” Transactions dropped faster than your enthusiasm for another meeting on Monday morning, from monthly highs to a mere 8.8K. Could it be that the earlier price rally was a product of speculators merely looking for a quick score? Who would’ve thought?

Meanwhile, DOGE derivatives paint a rather mixed picture. Total volume dropped 22.05% to $3.46B, signaling that speculative fervor has cooled off. But wait! Open Interest (OI) rose 2.7% to $2.64B, suggesting that traders are holding their positions. And in case you thought that was the end of the drama, Options OI surged by 10.61%, which might be a sign that traders are betting on volatility (or, you know, hedging their bets). However, Options Volume dropped off a cliff by 85.89%, signaling that the intraday speculation party is over.

Can DOGE reclaim $0.25 and sustain its breakout?

Dogecoin’s chances of reclaiming $0.25 and holding onto it are decent, thanks to the short liquidation frenzy, an undervalued MVRV, and rising OI. But let’s not get too carried away. The real test lies in whether DOGE can keep up the momentum with a strong move above $0.25. If it does, a push to $0.35 might not be out of the question. But if it fails, well, it’ll probably be a case of “the dog that didn’t bark.”

Read More

2025-05-19 06:19