Dogecoin Analysis Testing Key Support

• Dogecoin is trading directly on an ascending support line that’s held for over a year. The chart shows a clear symmetrical triangle: a downward resistance line from the previous peak and a rising support underneath. Price is hovering just above $0.17, a historically significant level during consolidation periods.

• Policy discussions around new tax rules for digital assets are creating uncertainty. Industry voices warn that sudden implementation could hurt smaller players and potentially trigger bankruptcies or talent migration. These regulatory headwinds are hitting just as Dogecoin tests critical technical support.

• Stricter tax requirements could dampen trading activity and derivatives participation, potentially reducing overall market volume. Some industry groups are pushing back, suggesting higher profit taxes instead of new operational burdens—arguing this would preserve liquidity while meeting fiscal goals.

• Technically, if Dogecoin holds the ascending trendline, we could see a bounce toward the middle of the triangle. A breakdown, however, opens the door to the $0.14 support zone marked on the chart.

• Expected regulatory changes include updated reporting standards, revised tax brackets for crypto income, and tighter classification rules. These macro pressures mirror the technical squeeze visible on the chart—narrowing price action and declining volatility suggest the market is increasingly sensitive to external triggers.

• The current zone looks attractive for accumulation if stability holds and regulatory clarity emerges.

• Dogecoin faces a critical moment: holding support could spark a medium-term recovery, while breaking down risks deeper losses. Traders are watching the trendline closely as the next major move takes shape.

Source: Don