Dogecoin has remained one of the most heavily traded digital assets based on memes and has a lot of community support, as well as plenty of liquidity.
The asset has seen some price weakness recently, but it continues to be in the news due to renewed interest in adoption, specifically regarding Binance and Buenos Aires, Argentina.
At press time, the coin is trading at $0.09400 with a decline of 1.35% over the past 24 hours.
Chart Shows Compression Near Key Support
DOGE is currently trading at $0.091 on the TradingView chart and is holding above the low Bollinger band support area at approximately $0.087.
The mid-band resistance shows that the current resistance level is at approximately $0.097, while the upper resistance level is positioned near $0.106.
Price action has been compressed over an extended period of time, providing a potential signal that the price may soon expand and become volatile in the near future.
The RSI has been trading in a range of 36-40 and is currently recovering out of the oversold area. If you see a decisive close above $0.100 by the end of the day, this will likely indicate a strong bullish trend and should provide an opportunity for the price to move to approximately the $0.106 level in March.
If the price cannot hold $0.087, the next major support area will be approximately $0.080.
Also Read: Dogecoin (DOGE) Tests Trendline 6 Times: Buyers Struggle to Take Control
Binance Cooperation Adds Fundamental Support
The user named Dogegod on X shared the most recent announcement regarding the adoption of Dogecoin for everyday transactions in Buenos Aires, which is a significant factor contributing positively to the overall utility-related narrative for Dogecoin.
Although details about how the adoption of Dogecoin by the city of Buenos Aires will occur are still limited, using Binance in conjunction with this announcement indicates that Doge is now receiving some institutional level of acceptance.
In an emerging market like Argentina, and with the overall strength of cryptocurrency adoption structurally, this should provide a positive sentiment and speculative positioning for the Dogecoin asset class going forward.
In conclusion, if there is a positive sentiment that supports higher levels of adoption, then there is every likelihood that March will see the start of a controlled recovery for Dogecoin or an extended period of downward motion in this cryptocurrency’s price.
Also Read: Dogecoin Pullback Accelerates as Resistance Holds Near $0.116 Level