Dogecoin (DOGE), the meme currency has been in a price slumber for years now with no signs of revival. Now with the number of margined DOGE short positions hitting a new all-time-high on Bitfinex, the DOGE community are hopeful about a possible short squeeze.
#Dogecoin shorts are at an all time high….. squeeze those mfs! pic.twitter.com/b2xqSBkNKY
— Sir Doge of the Coin (@dogeofficialceo) November 25, 2021
The short squeeze trend gained momentum at the start of the year when a Reddit group initiated a short squeeze for heavily shorted stocks namely GameStop (GME) and AMC. A short squeeze usually occurs when people start buying heavily shorted stocks, which eventually pushes the price up liquidating the short positions. When the GameStop saga began in February involving Robinhood, DOGE became a part of it as well leading to a surge in its price as well.
The original meme currency had a phenomenal run in the first half of the year, where it eliminated a zero from its price and went on to post a new all-time high of $0.7376 before bleeding out more than 70% of its valuation over the past 6 months. The meme currency got a little bit of momentum last month along with Shiba Inu (SHIB) and reached a new monthly high of $0.338 before sliding below $0.25 again this month.
Can Dogecoin (DOGE) Reinvent the Bull Run?
DOGE might be down 70% from its ATH but is still up 3,000% on the ROI which gives a fair picture of the massive bull run it pulled in the first two quarters of this bull season. The meme currency has not just increased in terms of price value, but it has also made key development of its infrastructure to make it a legit form of investment and payment option rather than just being a meme.
A short squeeze for GameStop and AMC stocks pull them out of bankruptcy and close down and as we head towards the latter half of the bull season, the DOGE community would hope for revivals to come back.
The meme currency is also on the verge of a long term breakout on the one-day chart that could possibly bring back the bulls with short squeeze playing as a catalyst.
Source: TradingView
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