DOGE crossing the downward trend line; 12% jump, a real opportunity?

study time:2minutes

Dogecoin (DOGE) jumped more than 12% during the last 24 hours and managed to overcome a long-term downward trend; The move came after weeks of price stabilization and reduced volatility, re-focusing investor attention on the memecoin.

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However, data analysis shows that this jump coincided with a significant increase in DOGE inventory on exchanges and a sharp growth in leveraged positions, which increases the risks inherent in the market.

During 2025, the Dogecoin balance on the Binance exchange increased from 7.9 billion to 10.9 billion, which usually means increased liquidity and willingness to trade more.

On the other hand, the volume of derivative contracts is heavily weighted towards long positions and about 850 million dollars of long positions against only 22 million dollars of short positions. This combination increases both the potential for price growth and the risk of forced liquidation.

DOGE is currently trading in the $0.132 range and indicators suggest that buyers have short-term control of the market. However, the closeness of RSI to the overbought range and the increase in the inventory of exchanges reinforces the risk of a price correction.