The Dogecoin price has not quite been able to replicate its late-2024 form so far in 2025, trading below the $0.2 level for most parts of the year. After a somewhat rough start to the month of June, the meme coin appears to be recovering nicely, jumping above $0.18 on Friday, June 6.

Interestingly, the Dogecoin price seems to only be at the start of what is expected to be an extended upward rally. According to a blockchain firm CEO, the “king of meme coins” is about to witness a price explosion.

Four Reasons Why DOGE Price Is Ready To Take Off

In a June 6 post on the social media platform X, Alphractal CEO and founder Joao Wedson offered on-chain insights into why the Dogecoin price could be perfectly positioned to embark on a parabolic run. The crypto expert provided four reasons why investors should watch out for the DOGE token.

4 reasons why #Dogecoin is setting up perfectly for an explosive move:

500d Aggregated Liquidation Level: A massive amount of liquidity ($350m) got trapped at the $0.5 level the last time #DOGE had a major correction. $DOGE tends to surge months after shorts pile up.

AtCrucial Technical Level: $DOGE is closing in on a crucial technical level. As seen on the chart, the #dogecoin /#bitcoin is almost at a historical support which served as a bullish springboard to new highs in the 2021 cycle, with meme token outperforming Bitcoin.

Meme Index Showing Early Recovery Signs: The Meme Index, containing 16 of the largest meme coins, is showing early recovery signs after a severe correction. A complete recovery of the index could propel meme coins to new highs.

Meme Coin Market Cap Far Larger Now: The total meme coin market cap is far larger now than in 2021, while the open interest is still at extremely low levels ( $3.2 billion ) and the daily volume is just around $12 billion. The low open suggests that the meme coin market condition is not overheated yet, with room for further upside growth.

— Joao (Alpha Fractal) (@AlphaFractals) June 6, 2025

Firstly, the 500-day Aggregated Liquidation Level reveals that a large amount of liquidity ($350 million) was trapped around the $0.5 level the last time the DOGE price experienced a major correction. According to Wedson, the Dogecoin price tends to surge months after shorts pile up.

Secondly, the price of Dogecoin against Bitcoin is closing in on a crucial technical level. As shown in the chart below, the DOGE/BTC is almost at a historical support — one which served as a bullish springboard to new highs in the 2021 cycle, with the meme token outperforming Bitcoin.

Thirdly, Wedson alluded to a broader catalyst for a potential performance of the Dogecoin price over the next few months. The crypto CEO mentioned that the Meme Index, containing 16 of the largest meme coins, is showing early recovery signs after a severe correction.

Finally, Wedson mentioned that the total meme coin market capitalization is far larger than in 2021, while the open interest is still at extremely low levels ($3.2 billion), and the daily volume is just around $12 billion. The low open interest suggests that the meme coin market condition is not overheated yet, with room for further upside growth.

Dogecoin Price At A Glance

As of this writing, the price of DOGE sits just beneath $0.18, reflecting a nearly 5% increase in the past 24 hours. This daily price action has done little to remedy the altcoin’s performance on the weekly timeframe. According to data from CoinGecko, the meme coin is down by more than 10% in the last seven days.