Dogecoin Stands Alone Amid Bitcoin Weakness... $3.3 Million in Shorts Liquidated

▲ Dogecoin (DOGE)

Dogecoin (DOGE) is attracting investors' attention by showing an upward trend even amidst a general decline in the cryptocurrency market.

CoinGape reported on May 14 (local time) that Dogecoin rose by over 2% that day, defying the market trend where Bitcoin (BTC) and major cryptocurrencies showed weakness. According to the article, Dogecoin has risen by 22% over the past month, and on that day, it rose by 2.29% while the total cryptocurrency market capitalization decreased by 1.54% to $2.65 trillion. CoinGape suggested three factors behind Dogecoin reaching its highest level since May 7, despite the absence of major catalysts such as mentions from Elon Musk or whale buying.

The first factor is a surge in spot and futures trading volume. Dogecoin's spot trading volume increased by 63% over 24 hours, reaching $2.17 billion, surpassing BNB's $1.7 billion. CoinGape cited April 29 as an example where increased trading volume preceded Dogecoin's rise. At that time, after the volume increased, Dogecoin's price rose from $0.099 to $0.11. Futures market trading volume also increased by 71% to $3.9 billion at the time of writing, growing 2.36 times from $1.65 billion on May 10 in just four days.

The second factor is a short squeeze driven by anticipation of the U.S. cryptocurrency market structure bill. The U.S. cryptocurrency market structure bill is set for a Senate markup process on May 14, and Senator Cynthia Lummis stated that senators have agreed on 99% of the bill. CoinGape reported that preemptive buying before the vote pushed up Dogecoin's price, leading to the forced liquidation of $3.3 million worth of short positions in the process. The funding rate also recorded a positive 0.0043%, indicating that long position investors are paying fees to maintain their positions.

The third factor is a bullish technical signal. Dogecoin's 50-day Exponential Moving Average (EMA) is above its 100-day EMA, and CoinGape explained that after a similar cross in July 2025, Dogecoin's price rose from $0.199 to $0.287. At that time, the increase was 46%, and if the same trend repeats, Dogecoin is projected to reach $0.155.

On-Balance Volume (OBV) also indicated buying dominance. CoinGape reported that the rising OBV line is interpreted as a signal that buying is outweighing selling. The article concluded that as long as the OBV continues to trend upwards, Dogecoin's potential to reach $0.155 remains.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*