The price of Dogecoin (DOGE) has continued to decline, fueled by the overall trend weakness in the meme coin market and a lack of sustainable bullish catalysts. Due to the poor performance, market sentiment has been in a slump for months.
However, one crypto analyst has noted that this period of prolonged consolidation and negativity occurs before any major expansion phase. He points to a chart and notes that Dogecoin’s price structure still looks dangerous, as he expects the meme coin to stage a potential rally that could catch many investors off guard.
Related reading
Dogecoin chart reflects previous expansion cycles
Market analyst Cryptollica does warning investors and traders should not sleep on Dogecoin after identifying a recurring cycle pattern that has preceded every major market DOGE bull rally since 2021.
In an X-post on May 27, the crypto expert said Dogecoin’s current market structure is too dangerous to ignore. He explained that the reason is not that Dogecoin is a meme coin, but because of the habit of respecting and following the same cycle structure before cause a huge price increase when the market least expects it.
The analyst pointed to his accompanying chart and noted that every price increase since 2021 started after that the market abandoned Dogecoin and stopped being interested in it. Cryptollica noted that while “the crowd laughed,” DOGE was quietly rebuilding the underlying structure before exploding higher.
Looking at the chart, Cryptollica shows that Dogecoin is trading near the lower limit of a multi-year descending channela level that has historically served as a springboard for significant price increases. The analysis shows that every meaningful trough within that structure was associated with the same market conditions that currently exist. This includes public disinterestnegative sentiment, and the price of the meme coin is at or near the lower limit of the channel.
After bottoming around $0.04 in mid-2022 and hitting $0.05 again in early 2023, Dogecoin staged a back-to-back recovery that brought the price to $0.22 in mid-2024 and eventually $0.49. Each of these explosive price increases began after the asset was widely rejected. Fast forward to today, Cryptollica has stated that Dogecoin is showing similar vertical rally signals, with multiple bullish metrics aligning, while market sentiment remains dead.
Chart metrics reinforce DOGE’s underlying bullishness
In its 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 may be in a reconstruction phase even without any hype or bullish confirmation in sight.
Related reading
The chart shows that Dogecoin’s Mayer Multiple stands at 0.64 and is therefore well below the long-term average. The meme coin also has an attention score of 10.1, further confirming that public interest is dead. In the meantime, the Bollinger bandwidth reads 138 and signals compressed volatility and weak price action.
Cryptollica states that all these numbers, combined with the negative market psychology, suggest that Dogecoin could be preparing for an explosive price rise. He noted that this increase will likely fool many people, as with previous trends.
Featured image from Unsplash, chart from TradingView