The Dogecoin price could be gearing up for a potential bullish move as it approaches a critical resistance level. Following the completion of its price consolidation, a crypto analyst has suggested that technical indicators point to a significant breakout to the upside.
Key Factors Supporting A Bullish Outlook For Dogecoin Price
Ghazi, a crypto analyst on TradingView, forecasted that the Dogecoin price could soon see a potential rise to $0.426. Currently trading near a significant resistance level at $0.408, Dogecoin could trigger a strong bullish uptrend if it breaks above this threshold.
Ghazi has disclosed that the Dogecoin price is consolidating, possibly setting the stage for a potential breakout. He revealed that the resistance level at $0.408 has historically stalled Dogecoin’s upward momentum, as the meme coin has continued to test but failed to maintain a price above this level.
According to the analyst, Dogecoin’s trading volume will also play a crucial role in confirming a potential breakout. He points out that an increased breakout could indicate strong buying interest, potentially driving the price upwards. Currently, Dogecoin’s daily trading volume is $3.01 billion, marking a recent 3.4% decline, according to CoinMarketCap.
Ghazi has also mentioned various technical indicators, such as Dogecoin’s Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI). The analyst has revealed that both technical indicators are showing positive signs for Dogecoin, providing additional support for a potential breakout above $0.42.
Based on the analyst’s price chart, if Dogecoin fails to break above resistance levels despite the support of positive technical indicators, the meme coin could fall to the support level of $0.402. Additionally, a further decline below this level could lead to a significant drop to $0.385.
Breakout Confirmation Signals To Watch Out For
While there is a possibility that the Dogecoin price could decline further, the analyst remains optimistic that its price consolidation, trading volume, and technical indicators indicate an imminent breakout. As a result, Ghazi has outlined a list of Dogecoin confirmation breakout signals for investors and traders to watch out for.
The analyst has emphasized that a decisive close above the key resistance on a higher timeframe, such as the 4-hour or daily Dogecoin chart, would confirm a breakout. Additionally, a notable increase in trading volume during the breakout would validate the heightened buying pressure and market participation.
Furthermore, a successful retest of the broken resistance level at $0.408, turning it into a support zone, would further solidify the analyst’s bullish Dogecoin breakout from its current price of $0.40 to $0.42.
To prepare for this potential Dogecoin price surge, Ghazi has advised traders to set stop-loss orders and adjust their position sizes according to risk tolerance. These adjustments are important to navigate potential market volatility and prevent financial loss.
Featured image created with Dall.E, chart from Tradingview.com