Dogecoin Price Consolidation: Volume, Resistance, And Technical Indicators Point To Another Breakout

the Dogecoin price It could be preparing for a potential upward movement as it approaches a critical resistance level. After the price consolidation was completed, one cryptocurrency analyst suggested that technical indicators point to a… Big breakout to the upside.

The main factors supporting the bullish outlook for Dogecoin price

Ghazi, Cryptocurrency Analyst at TradingView, expected That the price of Dogecoin may soon see a potential rise to $0.426. Dogecoin is currently trading near an important resistance level at $0.408 Leads to a strong uptrend If this limit is exceeded.

Ghazi revealed that The price of Dogecoin is standardizedand may pave the way for a possible breakthrough. He revealed that the resistance level at $0.408 has been reached historically Dogecoin’s bullish momentum has stalledThe meme currency continued to be tested but failed to maintain a price above this level.

According to the analyst. Dogecoin trading volume It will also play a crucial role in confirming a potential hack. He notes that increased penetration could indicate strong buying interest, which could lead to a rise in the price. Currently, Dogecoin’s daily trading volume is $3.01 billion, which represents a recent decline of 3.4%, according to CoinMarketCap.

Ghazi also mentioned several technical indicators, such as the Dogecoin indicator Moving Average Convergence and Divergence (MACD) And the relative strength index (RSI). The analyst 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 it is Dogecoin Failed to break through resistance levels Despite the support of positive technical indicators, the meme coin may fall to the support level of $0.402. Additionally, 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 price of Dogecoin could fall further, the analyst remains optimistic that price consolidation, trading volume and… Technical indicators point to an imminent breakout. As a result, Ghazi has outlined a list of Dogecoin confirmation hack signals that investors and traders should pay attention to.

The analyst emphasized that a decisive close above the key resistance level on a higher time frame, such as Dogecoin’s 4-hour daily chart, would confirm the breakout. Additionally, the observed increase in trading volume during the breakout would validate the increased buying pressure and market participation.

Furthermore, a successful retest of the broken resistance level at $0.408, turning it into a support area, would further solidify the analyst’s view. Dogecoin Bullish Breakout From its current price of $0.40 to $0.42.

To prepare for this potential spike in Dogecoin prices, Ghazi advised traders to place stop-loss orders and adjust their position sizes according to their risk tolerance. These adjustments are important to deal with potential market fluctuations and prevent financial loss.

Featured image created with Dall.E, chart from Tradingview.com