The Gwent outfit have endured a difficult season at Rodney Parade and have won just five of their 20 RaborDirect PRO 12 matches to date.
But Sidoli, a Wales Grand Slam winner in 2005, is adamant that there is enough potential in the region to sustain a bright future.
"The support is so passionate down here," said the 33-year-old.
"It's a sleeping giant that's woken once, years ago, when Newport were flying, with all the family village and things they used to do.
"It's got huge potential. At the minute it's just tough times out there, it really is.
"It's been a roller-coaster this season but the support is immense and very loyal.
"Obviously we are not where we'd like to be in terms of our league position, while you'd like to be involved in the Heineken Cup. But we are not lacking in spirit in attitude.
"We have got a lot of good young players coming through and that is a big footing for the future."
The Dragons face Munster tonight, in their last home game of the season. Munster have chosen to rest a host of their star players ahead of next weekend's Heineken Cup semi-final and the former Wales lock is determined to finish the season on a high.
"We have got one more home game now, which is important to reward the loyalty of the brilliant support we have here," said Sidoli.
"There are also players moving on or retiring and it's an emotional time for them.
"It will be a big old occasion and it will be great to be part of that."
Sidoli has another season on his deal with Rodney Parade and the 42-cap lock is also lending a hand coaching the Under-18s.
And the former Cardiff Blues star reckons the role has given him a new lease of life upon the pitch.
"It helps those players coming through and it makes you a better player yourself," he added.
"If you tell some kid to do something, you better be sure you are doing it as well on the weekend.
"The first year I did it, after I had coached for about two months, I found out the Academy squad were coming to watch one of our home games. I was really nervous.
"Obviously I've been nervous playing for Wales and things like that, but I couldn't believe how nervous I was when boys I was trying to coach were actually going to watch me play.
"I feel I am becoming a better player for it."