DOGE’s OI remained stable, indicating trader repositioning in derivatives.
Are all the signs pointing to a classic stealth phase?
Dogecoin [DOGE] continues to bleed under pressure, caught in a cascade of long squeezes that’s kept it pinned in the red. But beneath the surface, something interesting is unfolding.
Despite the downside volatility, Open Interest (OI) has remained range-bound between $2.65 billion and $3.70 billion, signaling that liquidity isn’t exiting the market. Instead, derivatives traders are quietly repositioning.
On-chain, however, both new and daily active addresses are flat. In other words, there’s no sign of crowd-driven momentum yet – no “hype” spikes, no social buzz. The crowd’s in full “wait and see” mode.
According to AMBCrypto, this phase usually marks the point where smart money starts laying serious groundwork for the next major move.
DOGE whales are following the classic playbook
As AMBCrypto highlighted, Dogecoin’s consolidation during heightened market FUD stands out as a structurally bullish signal.
While most top-cap assets are breaking down, DOGE is holding its range. Case in point: Ripple [XRP] has already lost its critical $2.34 support, exposing it to potential further downside.
In a market this volatile, it’s survival of the strongest support.
Assets across the board are being stress-tested, and those failing to defend key levels risk accelerating into deeper corrections. DOGE, for now, is showing resilience where it counts.
And it looks like smart money is strategizing around that playbook.
On the 26th of May, 200 million DOGE were pulled from Robinhood. The result? Dogecoin snapped a three-day losing streak and bounced right off the edge of its $0.21 support.
Source: TradingView (DOGE/USDT)
This resilience isn’t just luck.
With the broader market stuck in a chop zone and patience wearing thin, holding key levels becomes a pressure test for conviction.
DOGE has passed – for now. But if strong hands don’t keep stepping in, it risks falling into the same trap as XRP.
Derivatives remain intact despite price swings
As noted earlier, Dogecoin’s Open Interest is holding steady, with longs dominating at over 75.6% on Binance’s DOGE/USDT perpetuals contract – clearly a bullish tilt.
Source: Coinglass
Add stealth accumulation into the mix, and you’re looking at a setup primed for a breakout. But if that cushion disappears, get ready for a deleveraging domino effect.
In the past 24 hours, longs have been getting squeezed hard, accounting for 72% of leverage-driven liquidations. Still, traders keep stacking longs, seemingly syncing their moves with the smart money playbook.
Otherwise, with liquidity building up in derivatives, DOGE faces the risk of a full-blown deleveraging cascade that could drag it below its $0.20 psychological floor.
Next: Examining if Ethereum can keep climbing to $2,680 and beyond
