According to analyst Ali, Dogecoin could be on the cusp of an impressive price move that might ignite a significant short squeeze. If Dogecoin’s price rebounds to $0.35, $766.45M in short positions will be liquidated. The liquidation could significantly impact Dogecoin’s price movement going forward. Similarly, Solana’s price stabilized on January 28, erasing some of the losses experienced on Monday when Bitcoin and other altcoins crashed.
The SOL token faces different catalysts that could push its price even higher in the longer term, includingGrayscale’s filing for Solana and Litecoin ETF launch and the potential inclusion into the Strategic Bitcoin Reserve. The move comes as investors are now considering the Remittix(RTX) presale, which has seen significant milestones, including a price rally to $0.0456 and presale funding of over $9M.
Dogecoin Rally to $0.35 Might Trigger Massive Short Squeeze
The up-to-date liquidation heatmap suggests hefty short positions between $0.3397 and $0.3436. It also emphasizes the value of understanding high liquidity areas since they serve as magnet areas where big players or whales seize the chance to execute sizable trades, with the magnate zone sitting just below the $0.35.
Liquidations play a crucial role in the crypto market and rapidly influence price swings when traders with significant leveraged positions are forced to close out. Moreover, Ali’s analysis of the Dogecoin price aligns with the overalltechnical analysis, which suggests that the DOGE token might be at a make-or-break juncture.
Meanwhile, the price of Dogecoin remains above its crucial 0.32 Fib retracement, a support level that has been preventing further dips during the latest market sell-off. On the upside, the 0.5 retracement level at $0.394 remains a key level. A sustained recovery near this threshold could spark greater bullish confidence, with potential resistance emerging around the $0.476 and $0.592 region if Dogecoin regains enough uptrend force.
