DASH Breaks Out From Long-Term Bullish Pattern

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In Brief
  • DASH has broken out from a descending wedge.

  • There is support at $66 and resistance at $79 and $84, respectively.

  • DASH/BTC is still following a descending resistance line.

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On Oct 11, the DASH price broke out from a descending wedge. After validating it as support, the price resumed its upward move on Oct 19.



Unless the $66 support area fails, the price should continue rallying.

Breakout From Long-Term Wedge

DASH has been falling since Aug 16, when the price reached a high of $104.85. Since then, the price has been following a descending resistance line and possibly trading inside a descending wedge, which is considered a bullish reversal pattern.

On Oct 11, the price broke out from the wedge, returned to validate it as support, and created another bullish engulfing candlestick on Oct 11, briefly reaching a high of $78.47.

The closest support area is found at $66, while the closest resistance levels are found at $79 and $84, the 0.382 and 0.5 Fib levels of the entire decline, respectively.



DASH Chart By TradingView

Technical indicators on the daily time-frame are bullish:

  • The MACD is increasing and has turned positive.
  • The Stochastic RSI has made a bullish cross and is increasing.
  • The RSI is increasing after completing a very significant bullish divergence.

Previously when the MACD crossed into positive territory, the price eventually rallied by 45%, reaching the Aug 16 high.

 

Therefore, the price should continue rising unless it somehow manages to lose the $66 support area.

DASH Chart By TradingView

Wave Count

The most likely count suggests that DASH has completed a W-X-Y correction (shown in black below) with its low reached on Sept 3.

Since then, the price has possibly begun a new bullish impulse (blue) and is currently in wave 3. The move would also fit with the wedge breakout and the bullish technical indicators.

A fall below the w2 low at $64.30 would invalidate this count.

DASH Chart By TradingView

DASH/BTC

Cryptocurrency trader @Daancrypto tweeted a DASH/BTC chart that shows a descending wedge. He believes the price will continue falling until it reaches ฿0.0052.

Source: Twitter

Unlike the DASH/USD pair, DASH/BTC is still trading below a descending resistance line. Furthermore, it is facing strong resistance at ฿0.00625, having created a long upper wick.

Therefore, a price decline towards ฿0.00525, as outlined in the tweet, remains the most likely scenario.

DASH Chart By TradingView

For BeInCrypto’s previous Bitcoin analysis, click here!

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.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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