The price of Dogecoin (DOGE) continued to fall, boosted by the general weakness in the meme coin market and a lack of viable bullish catalysts. Due to the poor performance, market sentiment was in the dumps for months.
However, the crypto analyst noted that this period of extended consolidation and negativity occurs before any major expansion phase. He points to the chart, noting that Dogecoin’s price structure still looks dangerous, as he expects the meme coin to lead to a potential rally that could catch many investors off guard.
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Dogecoin’s chart reflects previous expansion cycles
Cryptollica’s market analyst is warning investors and traders not to sleep on Dogecoin after identifying a recurring cycle pattern that preceded each major one DOGE bull rally from 2021.
In a May 27 UX post, a crypto expert said Dogecoin’s current market structure is too dangerous to ignore. He explained that the reason is not because Dogecoin is a meme coin, but because of its habit of respecting and following the same cycle structure before bringing a huge jump in prices when the market least expects it.
The analyst pointed to his accompanying chart, noting that every price spread since 2021 has started after the market has abandoned Dogecoin and stopped being interested in it. Cryptollica noted that DOGE was quietly rebuilding its core structure while “the crowd laughed” before exploding higher.
Looking at the chart, Cryptollica shows Dogecoin trading near the lower limit of a perennial descending channela level that has historically served as a starting point for significant price increases. Analysis reveals that any significant decline within that structure has been accompanied by the same market conditions that are currently present. This includes public disinterestnegative sentiment and meme coin price at or near the lower limit of the channel.
After bottoming around $0.04 in mid-2022 and again at $0.05 in early 2023, Dogecoin continued recoveries that brought its price to $0.22 and eventually to $0.49 by mid-2024. Each of these explosive price increases began after the asset was widely dumped. Fast forward to today, Cryptollica stated that Dogecoin is showing similar signals of vertical growth, with multiple bullish metrics aligning market sentiment remains dead.
Chart metrics reinforce DOGE’s core drive
In his X post, Cryptollica noted that Dogecoin’s Crypto Cycle Score, highlighted at the bottom of the chart, is 19.9. This suggests that the meme coin could be here reconstruction phase even without hype or bullish confirmation in sight.
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The chart shows that Dogecoin Mayer Multiple it stands at 0.64, which places it well below its long-term moving average. The meme coin also has an attention score of 10.1, further confirming that public interest is dead. Meanwhile, Bollinger band width it reads 138 and signals compressed volatility i weak price action.
Cryptollica claims that all of these metrics combined with negative market psychology suggest that Dogecoin could be poised for explosive price growth. He noted that this increase is likely to fool many people, just as it has been the case with past trends.
Featured image from Unsplash, chart from TradingView
