Cryptocurrency analyst Joao Wedson shared a remarkable analysis about Dogecoin (DOGE) on social media. While Wedson suggested that Dogecoin might be preparing for another significant rise, he pointed out four important points based on historical data and market indicators.
According to Wedson, approximately 380 million dollars of liquidity was trapped at the 0.50 dollar level during Dogecoin's previous significant decline. The analyst argued that after such intense short accumulations in the past, DOGE showed a strong rise following a buildup process that spanned several months.
Touching on DOGE's performance against Bitcoin, Wedson expressed that the pair is currently approaching the critical support level seen before the 2021 rally. According to Wedson, this situation may indicate a period where Dogecoin could attract more interest than Bitcoin again.
Looking at the overall health of the memecoin market, Wedson noted that the Memecoin Index, consisting of 16 major memecoins, has shown the first signs of recovery after a deep decline. This indicates that memecoins, including Dogecoin, might start to attract interest again.
Although the market capitalization of memecoins is much larger compared to 2021, according to Wedson, the Open Position level is still low (around 3.2 billion dollars). The daily trading volume is also only 12 billion dollars, significantly lower than BTC or ETH levels.
*Investment advice
is not.
