Could Dogecoin (DOGE) Be Preparing for a Big Surge? Analyst Shares Current Views!

Cryptocurrency analyst Joao Wedson shared a remarkable analysis about Dogecoin (DOGE) on social media. Wedson suggested that Dogecoin might be preparing for another major surge, pointing out four key points based on historical data and market indicators.

According to Wedson, approximately $380 million in liquidity was trapped at the $0.50 level during Dogecoin's previous major decline. The analyst argued that after such intense short accumulations in the past, DOGE showed a strong surge following a period of accumulation that lasted for months.

Touching on DOGE's performance against Bitcoin, Wedson stated that the pair is currently approaching a 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 suggests that memecoins, including Dogecoin, could start to attract interest again.

Although the market capitalization of memecoins is much larger compared to 2021, Wedson noted that the Open Position level is still low (around $3.2 billion). The daily trading volume is also only $12 billion, significantly lagging behind BTC or ETH levels.

*This is not investment advice.