Dogecoin (DOGE) price continues to trend lower, driven by the overall trend weakness in the meme coin market and the lack of lasting growth catalysts. Due to penniless results, market sentiment has been dismal for months.

However, the cryptocurrency analyst noted that this period of prolonged consolidation and negativity occurs before any major expansion phase. He points to the chart and notes that Dogecoin’s price structure still looks hazardous as he expects the meme coin to stage a potential rally that could surprise many investors.

Dogecoin’s chart reflects previous expansion cycles

Cryptollica’s market analyst warning investors and traders not to fall asleep on Dogecoin after identifying the repeating cycle pattern that has preceded every major currency DOGE bull rally from 2021.

In X’s post on May 27, a cryptocurrency expert stated that the current Dogecoin market structure is too hazardous to ignore. He explained that the reason is not because Dogecoin is a meme coin, but its habit of respecting and following the same cycle structure before causing a huge price enhance when the market least expects it.

The analyst pointed to the attached chart, noting that every price expansion from 2021 started later the market abandoned Dogecoin and stopped being interested in it. Cryptollica noted that while the “crowd was laughing”, DOGE was silently rebuilding its core structure before exploding higher.

Looking at the chart, Cryptollica shows Dogecoin trading near the lower end of a multi-year discount channelthat is, a level that in the past was the starting point for significant price increases. The analysis shows that every significant low in this pattern was accompanied by the same market conditions that exist today. This includes lack of public interestnegative sentiment and the meme coin price being at or near the lower border of the channel.

After bottoming around $0.04 in mid-2022 and again at $0.05 in early 2023, Dogecoin saw subsequent gains that brought its price down to $0.22 and ultimately to $0.49 by mid-2024. Each of these price surges began after a widespread rejection of the asset. Fast forward to today, Cryptollica stated that Dogecoin is showing similar vertical growth signals, with multiple bullish indicators, while market sentiment remains dead.

Chart indicators reinforce DOGE’s fundamental bullish stance

In its post, X Cryptollica noted that Dogecoin’s crypto cycle score, highlighted at the bottom of the chart, is 19.9. This suggests that a meme coin may be present reconstruction phase even without the apparent hype and bullish confirmation.

The chart shows that Dogecoin Mayer multiple remains at 0.64, which places it well below the long-term moving average. The meme coin also has an attention rating of 10.1, further confirming that public interest is dead. Meanwhile, Bollinger band width reads 138 and signals compressed variability and penniless price action.

Cryptollica argues that all these indicators combined with negative market psychology suggest that Dogecoin may be preparing for a acute price enhance. He noted that this enhance will likely fool many people, as has been the case with previous trends.

Featured image from Unsplash, chart from TradingView