Dogecoin Inverse Head-and-Shoulders Breakout May Signal DOGE/BTC Rally as Buenos Aires Accepts DOGE for Taxes

• Inverse head and shoulders completed on DOGE/BTC, with a successful breakout and retest.

• Buenos Aires adds Dogecoin as an official tax payment option, expanding DOGE utility.

• Exchange balances rose 12% to 28 billion DOGE this week, per on-chain analytics (Glassnode).

Dogecoin breakout confirmed on DOGE/BTC; Buenos Aires accepts DOGE for taxes; learn how this affects price and adoption — read the actionable analysis.

What is driving the Dogecoin breakout on DOGE/BTC?

Dogecoin breakout is driven by a textbook inverse head and shoulders pattern on the DOGE/BTC daily chart that broke the neckline and completed a retest, signaling a bullish reversal. Combined with growing real-world acceptance, these technical and fundamental signals increase attention on DOGE.

How did the inverse head and shoulders form and confirm?

The daily chart formed a left shoulder, a deeper head and a right shoulder with a downward-sloping neckline. Price broke above the neckline, retested it successfully, and held support, which flushed weak holders and allowed larger traders to accumulate. Measured targets use the head-to-neckline distance projected above breakout.

Analysts described the structure as a classic bullish reversal. Measured upside targets are calculated by adding the head-to-neck distance to the breakout point; invalidation occurs on a move below the right shoulder.

Why is Buenos Aires accepting Dogecoin for tax payments?

Buenos Aires’ decision to accept Dogecoin for tax payments signals municipal-level experimentation with digital assets and represents increased public-sector utility for DOGE. The move broadens practical use cases beyond speculation and may encourage local merchants and residents to hold or use DOGE.

The announcement—reported by local observers and crypto commentators—adds a fundamental layer of adoption while markets react to the technical breakout. Municipal acceptance often draws regulatory and operational scrutiny but can materially boost perceived legitimacy.

What do rising exchange balances mean for Dogecoin price momentum?

Dogecoin is currently priced at $0.2642 with a 24-hour volume of $3,046,609,718. Exchange reserves increased by 12% to 28 billion DOGE this week, according to on-chain analytics provider Glassnode (source mentioned as plain text).

source: Glassnode

Higher exchange balances typically indicate increased supply available for selling. Without commensurate demand, this can temper short-term upside even when technical patterns point higher.

Frequently Asked Questions

How reliable is an inverse head and shoulders for forecasting DOGE/BTC?

An inverse head and shoulders is a widely followed reversal pattern; its reliability increases with volume confirmation on breakout and a clean retest. For DOGE/BTC, analysts noted accumulation after the retest, improving the signal’s conviction.

Can municipalities accepting crypto like DOGE drive broader adoption?

Yes. When cities accept crypto for payments, it creates practical use cases, encourages local infrastructure, and may increase on-ramps for residents. Implementation details and regulatory clarity determine the scale of adoption.

Key Takeaways

• Technical setup: Inverse head and shoulders on DOGE/BTC completed with a retest, signaling a potential bullish leg.
• Adoption: Buenos Aires accepting DOGE for taxes extends Dogecoin’s utility into municipal payments.
• On-chain flow: Exchange reserves rose 12% to 28 billion DOGE, adding short-term supply risk; monitor demand and liquidity.

Conclusion

Dogecoin breakout and regional adoption together create a mixed but notable outlook: technicals point to a bullish reversal while rising exchange balances could cap immediate gains. Monitor validated price action above the neckline and on-chain flows for next steps. For ongoing coverage, follow COINOTAG updates and on-chain analytics reports.