The DASH price has broken out from a long-term resistance area but has failed to initiate a significant upward move.
While DASH has bounced at a crucial support area, it has yet to confirm a bullish trend.
DASH had been following a descending resistance line since Jun. 2018, when it was trading at $225.
After four unsuccessful breakout attempts, DASH finally moved above this line at the beginning of Nov. 2020 and is currently in the process of validating it as support.
Technical indicators are relatively bullish, even though the MACD appears to have lost some strength.
If DASH continues moving upwards, the next resistance areas would be at $135 and $175, respectively.
Cryptocurrency trader @Mesawine1 outlined a DASH chart stating that DASH has broken out from a descending resistance line and validated it as support afterward.
The line coincides with that which we have outlined, and DASH has indeed broken out.
Still Waiting on a Bullish Trend
The daily chart provides the first support area at $85.5, the 0.618 Fib retracement level of the entire upward move. DASH has bounced three times on this support area, most recently having done so on Jan. 4.
While the bounce here possibly suggests that the correction is done, technical indicators aren’t yet bullish. On the contrary, the Stochastic Oscillator has made a bearish cross, and the RSI is below 50.
Until DASH breaks out from the short-term descending resistance line and/or reclaims the $98 area, we cannot consider the trend bullish.
Nevertheless, unlike the daily time-frame, indicators on the lower two-hour time-frame are bullish.
The wave count suggests that DASH is in a long-term wave 3, which began with the March low (shown in white in the image below).
Currently, DASH seems to have completed sub-waves 1-2 (shown in orange) and is possibly in sub-wave 3.
A likely target for the top of the move is between $173 and $177, found using the Fib extension of wave 1 (white) and external fib retracement of wave 2 (black).
Furthermore, this target coincides with the long-term resistance area outlined in the first section, making it a likely target for the top.
A decline below the wave 2 low at $62.4 would invalidate this particular wave count.
To conclude, DASH should eventually begin an upward move towards $173 – $177. However, there are no signs that the upward move has begun, thus making it possible that DASH will continue consolidating before eventually beginning to move upwards.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.