Understanding the Dogecoin Cycle Fractal and Its Price Predictions

Crypto analyst Cryptollica has identified a Dogecoin cycle fractal that suggests where the DOGE price could be headed next. The analyst presents a bullish outlook for this popular meme coin and believes it's an opportune time for investors to buy DOGE.

Key Takeaways

Cryptollica highlights a cycle fractal indicating that Dogecoin is poised for a potential bull run.
Current patterns show DOGE may rise above $1 based on historical market behavior.
The Relative Strength Index (RSI) indicates a strong buying opportunity as sellers appear to be exhausted.
DOGE is currently in a favorable 'Golden Pocket' accumulation zone.
The price of Dogecoin is currently around $0.127, reflecting a slight decline.

Dogecoin

Dogecoin Cycle Fractal Suggests Imminent Bull Run

In a recent post on X, Cryptollica shared insights into Dogecoin's current position in its price cycle, suggesting that the cryptocurrency might be on the verge of a bull run. The accompanying chart illustrates that DOGE could potentially rally past the $1 mark. The analyst described how this cycle fractal has been seen before at a macro level, pointing out four distinct structural points on the chart.

Cryptollica explained that Dogecoin is presently at Point 4, which aligns perfectly with historical accumulation phases that preceded past bull runs. The analyst analyzed the patterns within this cycle fractal, starting with the ‘Rounding Bottoms’ observed in the charts. Zones 1 and 2 represent periods of low volatility where investors accumulated assets during what some might refer to as the "boredom phases."

Dogecoin Source: Chart from Cryptollica on X

Zone 2, in particular, served as a launchpad for Dogecoin’s significant price increase in 2021. Currently, Zone 4 reflects similar price action, where Cryptollica suggests that DOGE is solidifying and forming a robust base before another potential spike in price.

Additionally, the analyst noted Dogecoin's Relative Strength Index (RSI), pointing out that the 32 level has historically served as a crucial support level. Every time the weekly RSI dipped to or near this baseline, DOGE has formed a macro bottom. At present, the RSI has reset to this vital support level, signaling that sellers may be out of steam, and momentum could soon shift upward.

DOGE in the “Golden Pocket” for Accumulation

Cryptollica emphasized that the cycle fractal is not a mere coincidence; rather, it represents a cyclical reset, indicating that Dogecoin is currently positioned in the 'Golden Pocket' zone for accumulation. Should the fractal play out similarly to its behavior in 2020, the ongoing price action for DOGE could be seen as a calm before an impending storm.

The analyst reiterated the technical formation, observing a bullish rounding bottom emerging for Dogecoin, while the RSI remains in a historically oversold territory, which is recognized as a buy zone. Cryptollica suggested that a significant price movement is on the horizon, emphasizing that while patience is necessary, the signals indicate a forthcoming impulsive move. Accordingly, they encouraged investors to “buy Dogecoin.”

As of this moment, Dogecoin is trading at approximately $0.127, marking a nearly 3% decline over the past 24 hours, as noted by data from CoinMarketCap.

Dogecoin DOGE trading at $0.12 on the daily chart | Source: DOGEUSDT on Tradingview.com