Dogecoin Weekly Fractal Suggests Potential Major Movement Ahead

Dogecoin is currently experiencing a phase of calm, reminiscent of previous market patterns before significant price surges. Analysis from crypto expert Cryptollica indicates that the current market structure mirrors previous accumulation phases, suggesting that a notable shift may be on the horizon.

Key Takeaways

Dogecoin appears to be in a consolidation phase, waiting for a potential price movement.
Analyst Cryptollica highlights four critical points in Dogecoin's history, indicating that the current position aligns with previous accumulation patterns.
The market may be setting up for a bullish run similar to those in 2017 and 2021.
The Relative Strength Index (RSI) suggests a potential bottoming out, indicating that sellers may be exhausted.
If historical trends continue, Dogecoin might be poised for a significant price increase.

Dogecoin price news

Is History About to Repeat for Dogecoin?

Dogecoin seems to be stabilizing without major price movements, appearing to await a trigger for its next move. For those who believe in the influence of memes on market trends, a chart circulating on platform X suggests that the current state resembles a calm before a price surge similar to previous years, particularly in 2017 and 2021.

Crypto analyst Cryptollica (@Cryptollica) shared a weekly DOGE chart that identifies four significant structural points throughout the coin's history. He asserts that the current phase aligns with earlier accumulation periods.

“We are observing a textbook fractal setup,” noted Cryptollica. “This chart illustrates four distinct structural points (1, 2, 3, 4). Presently, we are situated at Point 4, and the setup is echoing prior accumulation phases before bullish runs.”

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

Understanding Dogecoin's Current Market Cycle

The underlying message is to broaden your perspective, step back from daily market fluctuations, and observe the broader cycle trends. In Cryptollica's breakdown, the first and second zones represent periods of low excitement, where volatility diminishes, prices stabilize, and traders with weaker positions shift out, allowing more committed holders to step in. He notes that Zone 2 was the catalyst for the explosive price changes experienced in 2021.

“Zones 1 & 2 were the phases of 'boredom' where volatility reduced, and smart money accumulated,” he explained. “Specifically, Zone 2 acted as the launchpad for the massive parabolic run we saw in 2021. Currently, in Zone 4, we are witnessing a very similar rounding bottom pattern.”

The “rounding bottom” formation is significant. It indicates a gradual stabilization of price, forming a robust base without dramatic price shifts, which often causes investors to lose interest—an intentional part of the market strategy.

An additional factor to consider is the RSI metric, which provides a clearer perspective. Cryptollica pointed out a weekly RSI floor situated around the low-30s. This suggests that Dogecoin often hits significant cycle bottoms when the momentum shifts back into this range.

“Examine the RSI indicator at the bottom. The red line, around the 32 level, represents a historical support level,” he specified. “Each time the weekly RSI has approached this baseline (Points 1, 2, and 3), it has indicated a macro bottom. Presently, the RSI has returned to this crucial support level.”

This reflects the theory that selling pressure is fading—not simply based on current market behavior, but due to long-term momentum trends that have historically marked the end of selling phases and the beginning of growth.

Cryptollica is emphatic about his outlook for impending market movement.

“This is not random; it’s a cyclical reset,” he stated. “The chart indicates we are currently in the 'Golden Pocket' for accumulation. If the fractal behaves as it did in 2020 (Zone 2), what we see now could merely be the calm before a substantial storm.”

It's crucial to acknowledge that while fractals can indicate potential patterns, they do not offer guarantees. Dogecoin's trading behavior is influenced by a variety of factors, and external market conditions can affect historical comparisons. However, if past trends hold true, the future could be bright for Dogecoin investors.

As of this writing, Dogecoin is valued at $0.13294.

Dogecoin price DOGE needs to break through the resistance indicated in the red zone. 1-week chart | Source: DOGEUSDT on TradingView.com