Dogecoin consolidates – Is DOGE setting up a bear trap for $0.20?

Key Points

1. DOGE has been consolidating between $0.14 and $0.17, rebounding from a key support zone last tested in early April.

2. The coin has seen three failed breakout attempts since early May, each met with sharp long liquidations, reinforcing a bearish market structure.

3. Binance’s DOGE/USDT perpetuals show 75% long dominance, indicating strong trader conviction but also amplifying liquidity sweep risks.

4. A recent 32% drop from DOGE's early-May high of $0.25 marked a leverage flush, with long liquidation dominance spiking to 96.29% before cooling to 6.14%.

5. Resilience in DOGE's price action despite high liquidation dominance suggests potential accumulation, possibly fueling a squeeze toward $0.20.