Dogecoin Targets 30% Surge Following $12.66M Short Squeeze

Dogecoin Targets 30% Surge Following $12.66M Short Squeeze

Yashu Gola

Tue, September 22, 2026 at 1:01 PM GMT+3 2 min read

• DOGE-USD -8.16%

Dogecoin (DOGE) is setting up for another 30% rally after breaking out of a bullish cup-and-handle pattern, as a broad crypto rebound and a sharp short squeeze add momentum to the move.

DOGE Cup-and-Handle Breakout Targets $0.128

Dogecoin has rebounded over 50% in the past month, reaching $0.10 on Sept. 22. This is in line with my DOGE price prediction published in August.

The rally appears to have confirmed a breakout from a cup-and-handle pattern developing on DOGE's daily chart since June.

The "cup" portion formed as Dogecoin declined from around $0.09-$0.10 in June toward a local bottom near $0.066, before gradually recovering toward its previous highs in August.

DOGE then entered a relatively shallow pullback, trading inside a downward-sloping channel through September. This consolidation formed the pattern's "handle."

The latest rally has pushed Dogecoin above the handle's upper trendline while simultaneously reclaiming its 200-day exponential moving average (EMA) near $0.093.

That combination strengthens the breakout signal.

Cup-and-handle patterns typically resolve when the price breaks above resistance and rises by roughly the structure's maximum depth. Applying the same principle to DOGE puts its upside target near $0.128, approximately 30% above current levels.

The breakout has also arrived alongside rising trading volumes, suggesting stronger participation behind the move.

Conversely, a pullback below the $0.09-$0.093 breakout zone could weaken the immediate bullish setup. Dogecoin's 20-day EMA, currently near $0.087, serves as another potential support area.

Why Is Dogecoin Price Rallying?

Dogecoin's technical breakout comes amid a sharp recovery across the broader cryptocurrency market.

DOGE surged more than 15% at one point, outperforming most major cryptocurrencies, while Bitcoin climbed above $85,000 after gaining roughly 5% over 24 hours.

Much of the market-wide advance was amplified by traders being forced to close bearish positions. More than $1 billion worth of leveraged crypto positions were liquidated over the preceding 24 hours, with approximately $830 million belonging to short sellers, according to CoinGlass data.

Dogecoin participated heavily in that squeeze, with roughly $12.66 million in DOGE short positions liquidated as prices accelerated higher.

Forced closures of short positions require traders or exchanges to buy back the underlying asset, potentially adding further upward pressure during an already-rising market.

The rally has also coincided with growing bullish positioning among larger DOGE traders.

Risk appetite outside crypto has improved as well. Global equities advanced alongside a technology-stock rally, while easing oil prices helped reduce some of the pressure that had recently pushed bond yields higher.

This article was originally posted on FX Empire

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