As the price of Dogecoin approaches key resistance levels, its price may be setting itself up for a potentially bullish move. After the price consolidation was completed, one cryptocurrency analyst stated that technical indicators pointed to a significant upside breakout.

Ghazi, a cryptocurrency analyst at TradingView, predicts that the price of Dogecoin could soon rise to $0.426. Currently, Dogecoin is trading close to the important resistance level of $0.408, and a breach of this threshold could trigger a strong bullish uptrend.

Ghazi revealed that Dogecoin prices are consolidating and could set the stage for a potential breakout. He revealed that the resistance level of $0.408 has historically stymied Dogecoin's upward momentum, as the meme has consistently tested but failed to sustain a price above that level.

According to the analyst, the trading volume of Dogecoin will also play a key role in confirming a potential breakout. He noted that an increase in breakouts could indicate strong buying interest, which could push prices higher. According to CoinMarketCap, Dogecoin is currently trading at $3.01 billion a day, down 3.4% recently.

Ghazi also mentioned various technical indicators, such as Dogecoin's moving average convergence divergence (MACD) and Relative Strength Index (RSI). The analyst revealed that both technical indicators show positive signs for Dogecoin, providing additional support to break through $0.42.

According to the analyst's price chart, if Dogecoin still fails to break the resistance level despite the support of technical indicators, the meme coin could fall to the support level of $0.402. In addition, a further break below this level could lead to a sharp drop in the price to $0.385.

While the price of Dogecoin has the potential to fall further, analysts remain optimistic that its price consolidation, trading volume and technical indicators point to an imminent breakout. Therefore, Ghazi has put together a list of Dogecoin confirmation breakout signals for investors and traders to take note of.

Analysts emphasize that at higher time ranges, such as the 4-hour chart or the daily Dogecoin chart, a breakout will be confirmed if the close is determined above the key resistance level. In addition, a significant increase in trading volume during the breakout will validate buying pressure and increased market participation.

In addition, a successful retest of the breakout resistance at $0.408, making it a support area, will further consolidate analyst bullish momentum on the breakout of Dogecoin from the current price of $0.40 to $0.42.

To prepare for a possible spike in Dogecoin prices, Ghazi recommends traders place stop-loss orders and adjust the size of their positions based on their risk tolerance. These adjustments are essential to deal with potential market volatility and prevent financial losses.