In the midst of the bullish frenzy, the Indian Ministry of Finance suddenly struck hard! On the evening of May 14, India announced that DOGE would be included in the list of 'illegal speculative instruments,' completely banning exchanges from listing DOGE derivatives and freezing all related payment channels. This move directly led to:
Asian trading volume plummeted by 75%: Binance India's 24-hour DOGE trading volume dropped from $320 million to $80 million;
Miner exodus: Hash power from local Indian mining farms plummeted by 40%, with daily sell-off reaching 80 million coins;
Black market trading surges: The premium rate for DOGE on Telegram dark web channels skyrockets to 300%, and black market brokers openly state, 'This is the last escape route for Indian retail investors.'
RSI breaks through the 75 red line, the deadly trap behind the bullish surge, for any inquiries -- public account: Feng Baobao roasting sweet potatoes.
Recently, well-known cryptocurrency analyst Jonathan Carter shared his technical analysis results on social media platform X (formerly Twitter), announcing that Dogecoin has successfully broken through a long-term descending channel on the 3-day chart.
This breakthrough is significant, marking that Dogecoin has finally welcomed a turnaround after experiencing a long-term downward trend. Prior to this, Dogecoin's price movement was tightly constrained within a clear parallel channel, accompanied by months of continuous declines, during which new lows were consistently set.
Carter's chart provides an in-depth look at Dogecoin's historical performance, showing that before entering the descending channel, the currency exhibited a descending wedge pattern at the end of 2023. However, that same year, Dogecoin displayed strong upward momentum, confirming the validity of this technical pattern and leading to a significant upward trend, with its price once approaching the important resistance level of $0.45.
Although Dogecoin's price has been fluctuating within a downward channel since then, after several attempts and successfully breaking through the upward resistance, it has finally achieved a strong upward breakout.
According to Carter's chart analysis, Dogecoin's Relative Strength Index (RSI) is approaching 75, marking that this cryptocurrency is currently experiencing an extremely strong upward trend. However, this high RSI value also sends a warning signal that Dogecoin may soon enter the overbought zone, suggesting that its upward movement may face adjustment risks.
Given Dogecoin's current bullish structure, the resistance encountered on its upward path is relatively small. Therefore, Carter predicts that several key price points will attract attention in the future, specifically $0.287, $0.340, and the mid-term peak of $0.445. He also pointed out a support level around $0.092, which is expected to provide solid support for Dogecoin's price, preventing it from experiencing a larger decline.
Analysts expect the target price for DOGE to be raised to $0.6.
Additionally, cryptocurrency analyst 'Ace of Trades' on platform X pointed out that Dogecoin is showing early signs of a significant trend reversal. This analysis is based on the Wyckoff market chart, indicating that the meme coin has officially exited the accumulation zone and has entered an upward phase on the weekly chart.
The chart divides Dogecoin's years of price history into four classic market phases: accumulation, uptrend, downtrend, and distribution. For most of 2022 and 2023, Dogecoin traded sideways in the accumulation zone.
However, recent bullish activity has firmly pushed its price into the upward zone, suggesting that an upward trend may soon begin. The RSI trend for Dogecoin supports this view, as the indicator has currently broken through its Exponential Moving Average (EMA), standing at 53.97 during the analysis.
According to Ace of Trades, this RSI crossover highlights the strengthening of bullish momentum and the early phase of trend expansion. If the momentum continues, Dogecoin may continue to rise until reaching the upper boundary of the upward zone, with the next key resistance level at $0.34. Furthermore, if trading volume and market interest continue to grow, the path for Dogecoin to the distribution zone above $0.60 will become clearer.
