According to Ali Martinez’s analyst (@ali_charts), there may be Dogecoin (dog) a significant price movement that can lithe a powerful miniature squeeze (@ali_charts). He indicated On January 27, via X, “766.45 million dollars in short positions will be liquidated if Dogecoin Doge reflects to 0.35 USD”, which suggests that bear traders stand on uncertainly lean ice.

Massive psacoin miniature compression?

A look at the current liquidation heat map from Coumingss shows sturdy miniature positions focused between around 0.339755 USD and USD 0.34368. Couminggass data show USD 464.8 million at USD 0.339755, USD 534.79 million at USD 0.34054, USD 503.97 million USD at 0.341325 USD, USD 433.04 million at 0.34211 USD and 325, USD 29 million at USD 0.34368, which is about USD 2.26 billion.

This number emphasizes the size of a possible miniature squeeze, it should climb above this tight range. Couminglass describes its heat map as a “prediction, where probably liquidation levels are to initiate”, and also emphasized that “liquidations play a key role in the cryptocurrency market” because they can affect rapid price fluctuations when traders with immense cuts are forced close.

Couminglass emphasizes the value of understanding of “high liquidity areas” because they can serve as magnet zones, in which immense players, sometimes called whales, apply the possibility of implementing disputed transactions. Traders often jump into liquidation clusters at favorable prices, which then pave the way to acute reversal. In the case of Dogecoin, this magnet zone now sits just below 0.35 USD.

The Martinez dog analysis is in line with a wider technical image, which suggests that the token may be at the time of make-transfer. From December 8, when Dogecoin briefly increased to USD 0.4834, the price was defined by the decreasing trend line. Although Doge broke over this line on January 15, 2025 – indicalding a potential stubborn change – the variability of the unloading market on January 26 quickly dragged her back below.

The result is the scenario in which the decreasing line, currently around 0.335 to 0.34 USD, is a huge barrier. A successful violation of this zone can be crucial, especially considering the pure concentration of shorts, which Couminggass identified just above it. If the dog has accumulated enough to break this level, salesmen with miniature positions can be forced to quickly cover, and this wave of purchasing pressure can quickly accelerate the movement up.

Meanwhile, the dog remains above the key withdrawal of 0.382 Fibonacci near $ 0.313, which is a level of support, which prevented further decline during the latest market sales. Another technical support lies deeper on the chart, nearly 0.212 USD (0.236 Fibonacci ECRACTMENT), where traders will carefully observe any sign of the weakening momentum.

On the other hand, withdrawal 0.5 at 0.394 USD remains a key point. An attempt to maintain above this threshold can cause greater stubborn confidence, and potential resistance appeared again around the region of 0.476 to 0.592, if Dogecoin can regain sufficient strength.

A distinguished painting created from Dall.e, chart from tradingview.com