Dogecoin Surges 7% In A Day: Trader Warns Don't Get Caught In The Trap — $0.2079 Could Act As Price Magnet

Dogecoin's (CRYPTO: DOGE) single-day rally lifts bullish sentiment, but traders are split between optimism and caution. The meme coin's upward momentum has brought it into focus for both accumulation and potential trap setups.

Trader Notes: Crypto analyst Ali Martinez flagged that DOGE is currently trading in a historically strong buy zone. According to past patterns, such zones have consistently triggered major bull runs.

Similarly, Vegeta Crypto sees Dogecoin in a key accumulation zone, suggesting that any sweep of the lows followed by a reclaim should be considered a high-potential entry.

However, Trader Tardigrade issued a cautionary note: DOGE must close daily candles above $0.19 to avoid triggering a bearish Head and Shoulders breakdown pattern.

Statistics: According to TheKingfisher, a large, short liquidation cluster is forming around $0.2079, which could pull DOGE’s price higher as traders get squeezed. In contrast, long liquidations remain sparse, indicating less downside pressure. The analyst emphasizes that smart money targets zones of max pain and understanding these areas can help retail traders avoid getting trapped.

On the derivatives side, Coinglass reports that:

• Open interest in Dogecoin spiked 7.4%, reaching $3.2 billion in a single day.
• Options volume surged by 1,485%, while options open interest jumped 83%, reflecting growing speculative activity.

Read Next: 

• Dogecoin Recovers Above 20 Cents: Where Is DOGE Headed Next?

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