Dash (DASH) Breaks out Above 5-Month Resistance Line

The breakout transpired with significant volume. However, the price has reached a confluence of resistance areas, making it unlikely that it will be successful in moving above them on the first try. Full-time trader Nico (@CryptoNTez) stated that the DASH price has shown increasing volume while it attempts to break out from a long-term descending resistance line. Additionally, he stated that the current price level is full of potential resistance.

$DASH

Showing nice volume activity on Binance (ATH) as it breaks from descending trendline…

UCTS showing buy signals on the 1D & 2D (not confirmed yet)

Current zone overcrowded of potential resistance levels, so look for R/S Flips or retests as potential entries..#DASH pic.twitter.com/Aau22gUwPT

— Nico (@CryptoNTez) January 6, 2020

Will DASH be successful in moving above this resistance area? Let’s take a closer look at the price movement and find out.

Trendline Breakout

Beginning on June 27, the DASH price began to follow a descending resistance line that was validated four times. The price broke out above this line on January 5 and did so with relatively high volume. The rally stopped once the price reached the ₿0.075 resistance area, which acted as support in the period between September-November. Additionally, this area coincides with the 100-day moving average (MA), further strengthening its significance.

2015 Fractal

It is possible that the DASH price is in a similar position to what it was in December 2015. In both cases, the 3-day RSI was oversold and had generated bullish divergence. Additionally, the price broke out above a long-term descending resistance line. The price decrease to validate it afterward in January 2016, before resuming its nearly two-year-long bullish market. If the price were to do so again, the potential validation of the descending resistance line would act as the most profitable level to potentially re-enter the market.

DASH Trading Opportunities

The tweet states that the best trading opportunities are likely to arise if the price retests a previously significant resistance area. In order to validate the previous resistance line, the price could decrease to ₿0.06, which was also the previous resistance area. Initiating a long at that level with a stop loss around ₿0.058 would offer a 1:10 risk-to-reward ratio merely for a retest of the current resistance area at ₿0.075. This is not to say that the price will decrease all the way there, rather an illustration of possibly profitable price levels for the initiation of a long trade. To conclude, the DASH price recently broke out above a long-term descending resistance line. It is possible that this is the beginning of a long-term upward move. However, a short-term retracement is likely before the price makes another attempt at breaking out above the current resistance area.