Cryptocurrency analyst Joao Wedson shared a remarkable analysis of Dogecoin (DOGE) on social media. Wedson suggested that Dogecoin could be preparing for a major rise again, while drawing attention to four important points based on historical data and market indicators.
According to Wedson, during Dogecoin’s previous major drop, around $380 million worth of liquidity was trapped at the $0.50 level. The analyst argued that DOGE has shown a strong rally after months of accumulation following such intense short accumulation in the past.
Referring to DOGE’s performance against Bitcoin, Wedson stated that the pair is currently approaching the critical support level seen before the 2021 rally. According to Wedson, this could signal a period when Dogecoin could again receive more attention than Bitcoin.
Looking at the overall health of the memecoin market, Wedson noted that the Memecoin Index, which consists of 16 major memecoins, is showing the first signs of recovery after a deep decline. This suggests that memecoins, including Dogecoin, may be starting to gain traction again.
While the memecoin market cap is much larger compared to 2021, Open Interest is still low (around $3.2 billion), according to Wedson, and daily trading volume is also well behind BTC or ETH at just $12 billion.
*This is not investment advice.
