Trader Tardigrade (TATrader_Alan) believes that the next few days could see a major price surge for Dogecoin (CRYPTO: DOGE).

What Happened: Trader Tardigrade thinks that DOGE is forming the first leg in consolidation below the resistance and it's expected that the crypto will hit the resistance several times before breaking out. The next target remains $0.40.

"Fascinating to see a rarely seen tightening in 2-month Bollinger BandWidth on $DOGE, usually linked to large price move in either direction," Trader Tardigrade stated.

"This analysis makes me bullish for at least $1 on $DOGE in the near term and potentially $30 by 2026!"

Trader Tardigrade's analysis seems to be aligned with DOGE's recent pattern of breaking out from a descending wedge. Following the breakthrough at $0.1750, the price went above $0.1900 due to increased volume.

Before going higher, traders are expecting $0.22 to act as key support.

Related Link: How This Dogecoin Pattern Could Lead To A Move Towards $30 By 2026

Why Is Dogecoin Down Today? Huge Unwind From Big Holders Pushes To One-Week Low

Despite the strong upward momentum, Dogecoin faced a large amount of selling this weekend. According to Santiment, there was a massive sale of 170 million DOGE by big holders within 24 hours.

Those wallets had between 10 and 100 million DOGE, which reduced their total holdings from 23.91 billion to 23.74 billion.

The quick selling drove the price down from $0.24 to $0.215, reaching a new one-week low. According to CoinMarketCap, trading volume dropped by 34%, pointing to declining excitement in the market while it corrected.

Dogecoin saw a drop of 10% but recovered by 4.49% shortly after.

Since traders are more cautious, the $0.22 range is being watched very closely. A strong rise following this region could attract buyers, especially as long-term investors accumulate.

$7M in Long Liquidations Signal Risk-Off Sentiment

Dogecoin traders saw liquidations totaling almost $7 million in the derivatives market. Rekt says $6.78 million in those losses were long positions while short positions were $1.14 million.

On the other hand, open interest on CoinGlass was down 6.9% to $2.58 billion. The current long-to-short ratio across exchanges is 0.94 which shows a slight bit of a bearish positioning. Yet, professional accounts remain optimistic, with Binance showing a long-short ratio of 3.26 in its trader data.

Dogecoin's RSI is currently 61.60, indicating that its movement is trending up, though it is not yet too strong. Volume profile shows that accumulation tended to be higher near the levels where stock prices burst out. Analysts say the price is likely to fall back to retest $0.1800 before regaining momentum for $0.30 and $0.40.