The Dogecoin (DOGE) price has continued to trend downwards, fueled by general weakness in the meme coin market and a lack of sustainable bullish catalysts. Due to its poor performance, market sentiment has been in the dumps for months. However, a crypto analyst has noted that this period of prolonged consolidation and negativity occurs before every major expansion phase. He points to a chart, noting 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: Bitcoin Could Enter Freefall If This Level Cracks: Analyst Dogecoin Chart Mirrors Past Expansion Cycles Market analyst Cryptollica is warning investors and traders not to sleep on Dogecoin after identifying a recurring cycle pattern that has preceded every major DOGE bull rally since 2021. In an X post on May 27, the crypto expert said that Dogecoin’s current market structure is too dangerous to ignore. He explained that the reason is not because Dogecoin is a meme coin, but due to its habit of respecting and following the same cycle structure before delivering a massive price surge when the market least expects it. The analyst pointed to his accompanying chart, noting that every price expansion since 2021 began after the market abandoned Dogecoin and stopped taking interest in it. Cryptollica noted that while “the crowd laughed,” DOGE was rebuilding its underlying structure quietly before exploding higher. Looking at the chart, Cryptollica shows Dogecoin trading near the lower boundary of a multi-year descending channel, a level that has historically acted as a launchpad for significant price expansions. The analysis reveals that every meaningful low within that structure was accompanied by the same market conditions currently present today. This includes public disinterest, negative sentiment, and the meme coin’s price sitting at or near the channel’s lower boundary. After bottoming around $0.04 in mid-2022 and again at $0.05 in early 2023, Dogecoin staged back-to-back recoveries that brought its price to $0.22 and eventually $0.49 by mid-2024. Each of these explosive price rallies began after the asset was widely dismissed. 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 his X post, Cryptollica noted that Dogecoin’s Crypto Cycle Score, highlighted at the bottom of the chart, is reading 19.9. This suggests that the meme coin may be in a rebuilding phase even with no hype or bullish confirmation in sight. Related Reading: Unknown Wallet Destroys $8.5 Million In Bitcoin In Shocking Burn The chart shows that Dogecoin’s Mayer Multiple is sitting at 0.64, placing 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, the Bollinger Band Width is reading 138 and signaling compressed volatility and weak price action. Cryptollica argues that all of these metrics combined with negative market psychology suggest that Dogecoin could be gearing up for an explosive price rally. He noted that this surge will likely fool many people, just as it did in past trends. Featured image from Unsplash, chart from TradingView
