Crypto analyst Joao Wedson has renewed interest in Dogecoin, suggesting in recent on‑chain research that the popular meme‑coin could be gearing up for another major price move.
Based on historical patterns and current market dynamics, Wedson highlighted several bullish indicators:
• Trapped liquidity at $0.50: During the prior correction, roughly $380 million in short‑side liquidity got stuck near this key level—a setup that previously preceded explosive bounces for DOGE .
• DOGE/BTC support: The DOGE/BTC trading pair is currently testing a critical support zone, similar to that seen just before the 2021 rally. If this level holds, Dogecoin may again outperform Bitcoin .
• Meme Index recovery: The Memecoin Index—tracking the top 16 meme‑coins—has begun upward movement, indicating broader market sentiment improving in favor of these speculative assets.
• Still low open interest and volume: Despite a larger overall meme‑coin market cap, both open interest (~$3.2 billion) and daily volume (~$12 billion) remain subdued—often a precursor to sharp moves .
• Bitcoinist reports Wedson’s analysis was shared in a June 6 post on X by Alphractal’s CEO, highlighting these four key signals pointing to a breakout.
• Coindoo confirms that DOGE’s technical setup mirrors the pre‑2021 breakout patterns, with trapped liquidity, support retests, and rising memecoin sentiment aligning.
• Blockchain.News adds a broader perspective: Dogecoin’s strong community and patient holders—highlighted by AltcoinGordon—may give it staying power as meme‑coin mania returns.
Embedded from X:
DOGE approaching key support vs BTC, trapped liquidity near $0.50 & Meme Index showing early recovery—could be the calm before the storm for meme‑coins 👀
— Joao Wedson (@joao_wedson) June 5, 2025
What this could mean:
1. Liquidity “trap” zones have historically served as springboards for DOGE’s upward trends—$380 M at $0.50 is significant.
2. Holding support on DOGE/BTC may trigger renewed bullish momentum for meme‑coins.
3. A recovering Memecoin Index signals broader sentiment shift back towards risk‑on assets.
4. Low open interest and volume suggest the market isn’t overheated yet—plenty of room for upside surprises.
Joao Wedson’s analysis, supported by multiple reputable sources, paints a compelling pre‑breakout picture for Dogecoin: key support holds, liquidity traps clear, memecoin sentiment improves, and volume hasn’t yet peaked. While no guarantees, the technical setup and on‑chain signals warrant close attention for potential upside in DOGE.