Could Dogecoin (DOGE) Be Preparing for a Major Surge? Analyst Shares Latest Insights

Cryptocurrency analyst Joao Wedson recently shared an insightful analysis of Dogecoin (DOGE) on social media, suggesting that the popular memecoin may be poised for another significant upswing. Wedson's analysis highlights four key points, drawing on historical data and current market indicators.

Wedson points out that during Dogecoin’s last major correction, approximately $380 million in liquidity became trapped around the $0.50 mark. He argues that historically, DOGE has demonstrated a robust rally following months of accumulation after such a period of intense short accumulation.

Analyzing DOGE's performance relative to Bitcoin, Wedson observes that the DOGE/BTC pair is nearing a crucial support level, similar to the one preceding the 2021 rally. He believes this could indicate a phase where Dogecoin once again garners more attention than Bitcoin.

Furthermore, examining the broader memecoin market, Wedson notes that the Memecoin Index, encompassing 16 leading memecoins, is exhibiting initial signs of recovery following a substantial downturn. This suggests that memecoins, including Dogecoin, may be regaining momentum.

While the overall memecoin market capitalization is significantly larger compared to 2021, Wedson emphasizes that Open Interest remains relatively low, hovering around $3.2 billion. Additionally, the daily trading volume, at approximately $12 billion, is considerably lower than that of BTC or ETH.

*Disclaimer: This is not financial advice.