Is Dogecoin ready to explode? Crypto CEO explains why Taoist rally is possible
So far, Dogecoin’s price has not been able to fully replicate its late 2024 form, trading below $0.2 in most of the year. After a somewhat tough start in June, the meme coin seemed to recover well, up $0.18 on Friday, June 6.
Interestingly, Dogecoin’s price seems to be just at the start of a gathering that is expected to be extended. According to the CEO of the blockchain company, the “king of meme coins” is about to witness the price explosion.
Four reasons why Doge Price is preparing to take off
In a June 6 article on social media platform X, Letter CEO and Founder Joao Wedson provides on-chain insights to see why Dogecoin prices can determine the parabolic layer well. Crypto experts provide four reasons investors should pay attention to the Governor’s token.
First, the 500-day aggregate liquidation level shows that when the last major correction was experienced, a large amount of liquidity ($350 million) was trapped around $0.5. According to Wederson, the price of dogs tends to increase by several months after the shorts are piled up.
Wederson also stressed that the price of Dogecoin targeting Bitcoin is closing at a critical level of technology. As shown in the figure below, Doge/BTC has almost historical support – it is a song springboard for new highs in the 2021 cycle, with Meme Token oversharing Bitcoin.
Source: @joao_wedson on X
Additionally, Wadeson hinted over the next few months to show the potential performance of Dogecoin prices. The Crypto CEO mentioned that the meme index, which contains 16 largest meme coins, showed signs of early recovery after severe correction.
Finally, Wedson mentioned that the total capitalization of meme coins’ market capitalization is much greater than in 2021, while open interest remains at an extremely low level ($3.2 billion), with a daily amount of only $12 billion. Interest with low openness rates suggests that the meme coin market conditions have not overheated yet and there is room for further growth.
Clear at a glance
At the time of writing, Doge’s price is below $0.18, reflecting nearly 5% of the past 24 hours. This daily price action hardly compensates for the performance of the alternative tokens in the weekly time frame. According to Coingecko, meme coins have dropped by more than 10% over the past seven days.
The price of DOGE on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured images from Istock, charts for TradingView
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