Dogecoin's Weekly Fractal Signals Potential Major Movement Ahead

Dogecoin appears to be in a waiting phase, not experiencing dramatic changes in price, similar to previous accumulation periods before significant bull runs. A recent analysis by crypto expert Cryptollica suggests that Dogecoin's current price behavior closely resembles prior patterns that have preceded substantial increases.

Key Takeaways

Dogecoin is currently showing signs of stability, potentially indicating a future price surge.
A weekly chart by Cryptollica identifies four key structural points in Dogecoin's history, suggesting we are at a critical moment.
The current price action resembles historical accumulation phases characterized by low volatility.
The RSI indicator indicates a favorable buying opportunity, potentially marking a macro bottom for Dogecoin.
Historical patterns could suggest significant gains ahead for DOGE, although outside factors could influence price movements.

Dogecoin price news

Dogecoin Awaiting Its Next Move

Once again, Dogecoin is not experiencing any major price surges or declines; it's just remaining stable on a weekly basis, seemingly poised for action. Many analysts who believe in the power of meme-driven markets from previous years are pointing to a chart making rounds on social media platform X, indicating that this stability is reminiscent of accumulation phases seen before previous bull runs.

Crypto analyst Cryptollica (@Cryptollica) shared a weekly DOGE chart that highlights four critical structural points in the cryptocurrency’s past. He argues that the current price movement reflects these earlier accumulation phases.

“We are looking at a textbook fractal setup,” Cryptollica noted. “The chart emphasizes four distinct points (1, 2, 3, 4). We find ourselves at Point 4 now, and the structure is mirroring the pre-bull run accumulations from previous cycles.”

$Dogecoin fractal analysis$ Dogecoin fractal analysis | Source: X @Cryptollica

Can Dogecoin Follow Historical Trends?

The essence of this analysis is to step back and analyze the broader cycle rather than fixating on day-to-day price movements. According to Cryptollica, Zones 1 and 2 were characterized as “boredom phases,” where price volatility diminished, and the market saw a shift from less committed holders to more patient investors. He claims that Zone 2 acted as the launchpad for the explosive price growth seen in 2021.

“Zones 1 & 2: These are recognized as ‘boredom phases’ where volatility waned, and informed capital accumulated,” he explained. “Specifically, Zone 2 was crucial for the massive parabolic rise in 2021. Zone 4 (Current Price Action): We are currently observing a similar rounding bottom pattern.”

The significance of this “rounding bottom” cannot be understated; it describes a situation where prices stabilize, forming a solid base and resisting downward movement, often going unnoticed by the broader market. This decline in attention can, ironically, contribute to its strength.

Another key point raised is related to the Relative Strength Index (RSI). Cryptollica noted a weekly RSI floor around the low-30s level, suggesting that Dogecoin has historically found its lowest cycle points when the momentum indicator falls within this range.

“Observe the RSI indicator depicted at the bottom. The red line (around the 32 level) acts as an important historical floor,” he remarked. “Each time the weekly RSI approached this level (Points 1, 2, and 3), it signaled a macro bottom. Currently, the RSI has reset to this critical support level.”

This claim hints at “exhausted sellers” — not merely a reflection of a specific day’s trading activity but rather an indication that the longer-term momentum gauge has retraced to where Dogecoin once halted its downward trend and began building upward momentum again.

While Cryptollica doesn't shy away from expressing what may happen next, he emphasizes that this pattern is no accident.

“This isn’t random noise; it’s a cyclical reset,” he wrote. “The chart indicates we are in the ‘Golden Pocket’ for accumulation. If the fractal echoes the events of 2020 (Zone 2), the current price action could merely be the calm before a significant upward movement.”

It is important to note that while fractals can provide insights, they do not guarantee outcomes. Dogecoin’s price doesn't exist in isolation, and macroeconomic trends and liquidity can significantly impact historical comparisons. However, if history has any hold for Dogecoin, promising times could be on the horizon.

As of the latest updates, Dogecoin's trading price stands at $0.13294.

Dogecoin price DOGE needs to overcome the red zone, 1-week chart | Source: DOGEUSDT on TradingView.com