Dogecoin Surges 5% in 24 Hours Amid Parabolic Run Speculation

Dogecoin, the popular meme coin, has seen a resurgence in price after a rough start to the year 2025. The cryptocurrency, which had been trading below the $0.2 level for most of the year, jumped above $0.18 on Friday, June 6. This recovery has sparked interest among investors and analysts, who are now speculating about the potential for a significant rally in the coming months.

According to Joao Wedson, the CEO and founder of Alphractal, Dogecoin is poised for a parabolic run. In a post on the social media platform X, Wedson provided four key reasons why investors should be watching the DOGE token closely. The first reason is the 500-day Aggregated Liquidation Level, which indicates that a large amount of liquidity ($350 million) was trapped around the $0.5 level during the last major correction. Wedson noted that the Dogecoin price tends to surge months after shorts pile up, suggesting that the current conditions could be favorable for a price explosion.

Wedson also highlighted the technical level of the DOGE/BTC pair, which is closing in on a historical support level. This level served as a bullish springboard to new highs in the 2021 cycle, with Dogecoin outperforming Bitcoin. The crypto CEO mentioned that the Meme Index, which contains 16 of the largest meme coins, is showing early recovery signs after a severe correction. This broader catalyst could contribute to a potential performance of the Dogecoin price over the next few months.

Additionally, Wedson pointed out that the total meme coin market capitalization is far larger than in 2021, while the open interest is still at extremely low levels ($3.2 billion), and the daily volume is just around $12 billion. The low open interest suggests that the meme coin market condition is not overheated yet, with room for further upside growth. As of this writing, the price of DOGE sits just beneath $0.18, reflecting a nearly 5% increase in the past 24 hours. However, this daily price action has done little to remedy the altcoin’s performance on the weekly timeframe, as the meme coin is down by more than 10% in the last seven days.