Dogecoin Rises to Two-Week High on Short Liquidations, Whale Buying

Dogecoin rallied to a two-week high on Wednesday, August 12, 2026, driven by a wave of short liquidations and renewed interest from large holders, though traders remain cautious about the sustainability of the upward move. The cryptocurrency, often categorized as a memecoin, climbed 2.93% to reach $0.073 before settling near $0.0721, according to market data.

The price surge followed a period of consolidation and was significantly fueled by a short squeeze. As the market rebounded, leveraged short positions below the $0.07 support level were forced into liquidation. Data from CoinGlass indicated that more than $1.5 million in short positions were liquidated, compelling short sellers to buy back DOGE and adding to the buying pressure. This activity was accompanied by a 72% increase in trading volume, which rose above $500 million, and a 13% expansion in market capitalization to $12.3 billion.

The derivatives market showed a clear shift in sentiment. Futures net inflows turned positive for the first time in months, reaching $9.36 million, while derivatives volume surged 114% to $1.22 billion. The long-to-short ratio climbed to 1.01, exceeding 1.2 on major exchanges like Binance...