Last week’s decrease in the Bitcoin price was even more unforgiving for altcoins, the majority of which suffered drops in a much larger magnitude than that of BTC. However, over the past two days, the price of two altcoins — STEEM and DASH — has increased considerably.
Trader @Anbessa100 tweeted a STEEM chart that shows a massive 276 percent price increase. Even though the overall sentiment is bearish, STEEM has posted massive gains, which is unusual to say the least. A similar occurrence is seen in the price of DASH, even though the pump has not been as pronounced.
Below, we are going to take a look at the price of STEEM and DASH and determine the direction of their future movement.
STEEM
In the case of STEEM, it is worth noting that the current move has been accumulating for a long period of time. The price had been consolidating near 1600 satoshis since August 2019 and, during this whole time, the weekly RSI generated significant bullish divergence. The move lasted until the price reached the 0.5 Fib level of the previous decrease near 7800 satoshis before the price created a long upper wick and moved downwards. The volume on the upward move has been massive.
The daily chart shows that a golden cross has transpired on January 29 and the price has been trading above its 200-day moving average (MA) since, having validated it as support. However, the entire movement seems unnatural and the price is already 32 percent below its daily high, having created a very long upper wick.
While we could see some range trading between 4500-5500 satoshis, we are not ruling out the possibility of a rapid decrease that would take the price below 3000 satoshis — very close to pre-breakout levels.
Conclusions
- The weekly RSI has generated considerable bullish divergence.
- The price has reached the 0.5 Fib level of the previous downward move.
- A golden cross has transpired.
- There is support at 4500 satoshis.
DASH
The DASH price increased significantly (32 percent) on March 18. It did so once it reached the support area at ₿0.0085 where it created two long lower wicks on March 12 and 13. While the price increase seems much more natural than that of STEEM, the price still validated the previous support area at ₿0.015 as resistance and is in the process of moving downwards. Unless it breaks out above this resistance area and reclaims it as support, we are expecting the price to continue trading inside a range between ₿0.015 and ₿0.0085.
Conclusions
- There is support at ₿0.0085.
- There is resistance at ₿0.0115.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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