Dogecoin Bulls: Setting a Bear Trap Before the $0.25 Showdown?

Dogecoin's momentum builds as it approaches the critical $0.25 threshold—but is this rally genuine or just clever positioning?

The Setup

DOGE bulls are pushing hard, creating what looks like textbook bullish momentum. They're driving volume up, shaking out weak hands, and painting charts green. Yet seasoned traders watch for the classic bear trap pattern—where apparent strength masks an impending reversal.

The Psychological Game

Retail investors pile in, fueled by memes and momentum. Meanwhile, whales might be loading up on shorts. If DOGE hits $0.25 and reverses, it could trigger a cascade of stop-losses—a perfect trap.

Market Realities

Remember: in crypto, patterns often repeat until they don’t. Dogecoin’s journey has always been part utility, part parody—never forget the latter. As one cynical trader put it, 'In a market driven by tweets and dreams, even traps have traps.'

Watch the $0.25 level. Break and hold? Bullish. Reject and fall? Classic trap. Either way, expect volatility—and trade accordingly.

Key Takeaways

Dogecoin whales added 1.35 billion DOGE, anchoring support at $0.20. With 66% of accounts short and leverage stacked NEAR $0.22, DOGE looked primed for a bear-trap squeeze that could push toward $0.25.

Dogecoin [DOGE] ROSE 0.96% off the $0.18 base, holding $0.20. Even with three fresh lower lows in August, price action kept snapping back, hinting at a stubborn bid wall that refused to give way.

Naturally, that gave Doge a technical edge.

In a choppy tape where even Ripple [XRP] has rolled over 3.65% on the month, slipping under the key $3 level, DOGE’s structural resilience looks like quiet accumulation under the surface.

Source: TradingView (DOGE/USDT)

On top of that, Dogecoin’s dominant whale cohort (100 million – 1 billion wallets) loaded up 1.35 billion DOGE in the first half of August, lifting holdings to a yearly peak of 27.65 billion.

Zooming in, the Cost-Basis Heatmap flagged nearly 9 billion DOGE anchored in the $0.20–$0.21 zone.

In turn, making it one of the densest clusters on the board. That means a huge chunk of supply has been defending this level.

Put together, DOGE looked less like it was drifting sideways and more like it was coiling. In fact, the tape seemed primed for a squeeze that could catch the market offside once risk-on flows returned.

Short clusters signal DOGE setting up a bear trap

As Dogecoin bulls shift into defense, they may be baiting a trap for the shorts.

However, Perp Markets across major exchanges show a lopsided structure. Nearly 66% of accounts are running short, marking a crowded play that fits the risk-off tape and has traders leaning pullback. 

That said, this is where DOGE’s edge became clear.

In fact, the $0.20 bid wall holds firm, and with a fat short cluster sitting at $0.22 packing $2.82 million in leverage, the setup looked primed for a bear trap squeeze.

Source: CoinGlass

Simply put, DOGE is lining up one of the cleanest squeeze setups on the tape. Moreover, whales look ready to flip defense into offense the moment overcrowded shorts start getting blown out.

The result?

The memecoin is looking set to test $0.25 resistance. From here, the tape keeps a breakout in play, turning this pullback into a clean accumulation zone.