1. The technical formation towards the decision area
2. Buenos Aires' adoption as a landmark for real-world usage
3. Changes in the institutional landscape during the triangle pressure
4. Conclusion
Dogecoin finds itself in a crucial position as its price is trapped within a symmetrical triangle formation that may be critical in determining its next major movement. Experts hope for a bullish breakout reaching $0.21, while new events add additional meaning to the picture. Buenos Aires has become the first major city to allow local tax payments using Dogecoin, giving the meme currency a practical use. The combination of price pressure and new usage makes traders watch closely.
### Technical formation towards the decision zone
Dogecoin is entering a significant phase as its price narrows within a symmetrical triangle. The trend lines in the pattern converge further in December, and the range becomes tighter. This typically occurs before a major price adjustment.
Dogecoin is currently trading between $0.14 and $0.15. Key support levels are between $0.150 and $0.145, while resistance is at $0.165. If it breaks above the trend line, it may rise towards $0.18 to $0.20, representing a significant increase from its current levels. The currency has shown resilience as it has maintained support levels since late November.
Volume today decreased by 8.7% to $1.48 billion. This decline comes in the form of a triangle pattern, and the market is looking for a catalyst. The Relative Strength Index is between the mid-forties and early fifties, indicating a lack of real bullish or bearish strength.
### Adoption of Buenos Aires as a landmark for real-world usage
In Buenos Aires, residents can now pay municipal taxes using cryptocurrencies, including Dogecoin. This demonstrates the use of the currency in everyday reality and not just due to speculators. Residents can now pay property taxes, register vehicles, and traffic fines using Dogecoin through a simple QR code. The payment system automatically converts the cryptocurrency to Argentine pesos. This protects the city from price volatility while allowing people to choose their payment method.
This change helps the Argentine economy. The country has faced many financial issues, and using cryptocurrencies is a way for people to access their funds when banks are difficult. The city is also educating people on how to use cryptocurrencies safely, with the help of platforms like Binance, to promote good practices.
### Changes in the institutional landscape during the triangle pressure
In addition to local governments, large financial institutions are changing the landscape for Dogecoin technology. Momentum increased for a period on December 1 after Vanguard allowed more than 50 million of its clients to invest in cryptocurrency ETFs, making investment in cryptocurrencies one of the largest gateways offered by traditional finance.
Since September, the growth of ETF funds has continued at a rapid pace. REX-OSPREY recently launched the first Dogecoin ETF, allowing institutional investors to invest in Dogecoin in a regulated and easy environment. However, there has been no significant additional funding for it until the end of 2023 despite numerous reports about it before the launch.
Additionally, there is a proposal on GitHub to reduce block rewards for mining from 10,000 Dogecoin per block to only 1,000 Dogecoin; if approved, this will dramatically lower the inflation rate of Dogecoin to an approximate average of 0.33% annually.
### Conclusion
The symmetrical triangle pattern in Dogecoin is approaching a bullish or bearish perfection as it balances technical setup and real-world usage. The adoption by municipalities in Buenos Aires and the maturity of institutional infrastructure make Dogecoin crucial. A breakout above the resistance at $0.18 to $0.20, and if it fails, support near $0.135 will lead to deeper declines. This meme currency's performance will determine market momentum in the coming weeks.
