Dogecoin finds itself in a significant position given that its price is trapped within a symmetrical triangle formation which could prove decisive in determining its next major movement. Experts are hoping for breakout up to $0.21 while new events give extra meaning to the picture. Buenos Aires is the first big city to allow DOGE to be used to pay local taxes, which allows the meme coin to have real world use. The combination of price pressure and new use is causing traders to watch things closely.
Technical Formation to the Decision Zone
Dogecoin is moving into an important stage because its price is spiking inside a symmetrical triangle. The trendlines in the pattern approach each other more closely in December and the range becomes narrower. This typically occurs before a major price adjustment.
DOGE is currently trading between $0.14 and $0.15. Its major support levels lie between $0.150 and $0.145; the resistance lies at $0.165. If it breaks above the trendline, up towards $0.18 to $0.20 it could be significantly upside from its current level. The coin has been resilient as it has been holding its support levels since late November.
Volume is lower today, down 8.7% to $1.48 billion. This drop is in the form of a triangle pattern, and the market is looking for a catalyst. The Relative Strength Index falls between the mid-40s and low 50s, which means there is no real bullish or bearish strength.
Buenos Aires Adoption Milestone of Real-World Utility
In Buenos Aires, people may now pay city taxes using cryptocurrency, including Dogecoin. This demonstrates the use of the coin in actual, day-to-day reality and not just because of speculators. Residents can now pay property taxes, vehicle registrations and traffic fines using DOGE by an easy QR code. The payment system automatically converts the cryptocurrency into Argentine pesos. This keeps the city safe from fluctuations in prices but allows people to make their choice of payment.
This change helps Argentina’s economy. The country has had a lot of financial trouble, and utilizing cryptocurrency is a way for people to get the money when banks are difficult to use. The city is also educating people on how to use the crypto safely, with the help of platforms such as Binance, spreading good practices.
Changes in Institutional Landscape During Triangle Compression
Beyond the local governments having it, big financial institutions are shaking up space for DogeCoin’s technology. Momentum swelled for a while on Dec. 1 after Vanguard allowed more than 50 million of its customers to invest in crypto ETFs to make investing in crypto one of the biggest doors traditional finances have to offer.
Since September, the growth of exchange traded funds (ETFs) has continued to grow at a rapid pace. REX-Osprey recently created the very first Dogecoin (DOGE) ETF to allow institutional investors an opportunity to invest in DOGE in a regulated environment that was easy for them to find. But there has not been a great deal of additional funding for it as of the end of 2023 even though there have been many reports telling about it prior to launching.
Additionally, there is a proposal on GitHub to decrease the number of Block Rewards received for mining from 10,000 DOGE per block down to only 1,000 DOGE per block, if approved it would cause Dogecoin’s inflation rate to drop dramatically to an estimated average of roughly 0.33% Annually.
Conclusion
Dogecoin’s symmetrical triangle pattern is nearing bullish or bearish perfection as it balances technical setup with real-world usage. Municipal adoption in Buenos Aires and maturing institutional infrastructure make DOGE crucial. A break over resistance at $0.18 to $0.20 and support near $0.135 will lead to deeper falls if it fails. This meme coin’s progress will determine its market momentum in the next few weeks.
Source: https://blockchainreporter.net/dogecoin-triangle-pattern-signals-critical-breakout-point-as-market-tightens/
