Crypto analyst Joao Wedson has sparked renewed interest in Dogecoin with a fresh analysis suggesting the popular memecoin could be gearing up for another major move.

Drawing on historical patterns and current market dynamics, Wedson outlined several indicators pointing to a possible rally on the horizon in an article on Monday.

One of the key insights from his breakdown involves liquidity patterns. Wedson pointed out that during Dogecoin’s previous sharp correction, a significant $380 million in liquidity had become trapped around the $0.50 mark.

Historically, he noted, periods of aggressive short accumulation followed by long accumulation phases have often preceded strong upward moves for DOGE.

“After a sharp price drop, the asset usually faces difficulties breaking through the resistance at the prior support level. This is where liquidity is trapped, and if the asset manages to break above this level, it can continue to rise rapidly.”

He also turned attention to the DOGE/BTC trading pair, which is currently hovering near a critical support level reminiscent of its position just before the explosive 2021 rally.

According to Wedson, if this level holds, Dogecoin could start drawing more attention than Bitcoin itself—just as it did in past hype cycles.

“If the support holds, we can expect to see DOGE/BTC gain momentum and potentially break above the key resistance at 0.0004, which could open the door for a substantial rally in the coming months.”

Broadening the view to the memecoin sector as a whole, Wedson highlighted early signs of recovery in the Memecoin Index, a metric tracking the performance of 16 leading tokens in the category.

After a prolonged downturn, the index is beginning to show bullish momentum—another hint that sentiment may be shifting in favor of speculative assets like Dogecoin.

Still, Wedson emphasized that while the overall market cap for memecoins is significantly larger than in previous years, key metrics like open interest and trading volume remain subdued.

Current open interest stands at just $3.2 billion, with daily volume across the sector at about $12 billion—far below Bitcoin or Ethereum levels.