Analyst Sees Signs of a Potential Dogecoin Comeback as Memecoin Market Shows Early Strength

Crypto analyst Joao Wedson has sparked renewed interest in Dogecoin with a fresh analysis suggesting the popular memecoin could be gearing up for another major move.

Drawing on historical patterns and current market dynamics, Wedson outlined several indicators pointing to a possible rally on the horizon.

One of the key insights from his breakdown involves liquidity patterns. Wedson pointed out that during Dogecoin’s previous sharp correction, a significant $380 million in liquidity had become trapped around the $0.50 mark. Historically, he noted, periods of aggressive short accumulation followed by long accumulation phases have often preceded strong upward moves for DOGE.

He also turned attention to the DOGE/BTC trading pair, which is currently hovering near a critical support level reminiscent of its position just before the explosive 2021 rally. According to Wedson, if this level holds, Dogecoin could start drawing more attention than Bitcoin itself—just as it did in past hype cycles.

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Broadening the view to the memecoin sector as a whole, Wedson highlighted early signs of recovery in the Memecoin Index, a metric tracking the performance of 16 leading tokens in the category. After a prolonged downturn, the index is beginning to show bullish momentum—another hint that sentiment may be shifting in favor of speculative assets like Dogecoin.

Still, Wedson emphasized that while the overall market cap for memecoins is significantly larger than in previous years, key metrics like open interest and trading volume remain subdued. Current open interest stands at just $3.2 billion, with daily volume across the sector at about $12 billion—far below Bitcoin or Ethereum levels.

Whether Dogecoin is truly on the verge of a comeback remains to be seen, but Wedson’s analysis offers an intriguing case for a potential shift in the memecoin narrative.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.