DASH Could Soon Break Out From Long-Term Resistance Line

After a possible short-term drop, the price is expected to be successful in breaking out.

Long-Term DASH Support

In December 2019, the DASH price reached a low of ₿0.0053. This put the price well inside a significant support area that had previously not been touched since the end of 2015. After generating considerable bullish divergence in the weekly RSI, the price promptly initiated an upward move, increasing by 200% in order to reach a high of ₿0.016, but has been correcting since. At the time of writing, the price was trading only slightly above the ₿0.0072 support area.

Descending Resistance

The daily chart shows that DASH has been following a descending resistance line since the beginning of 2020. At the time of writing, the price was trading directly under this resistance line, validating it for the third time. The line also coincides with the 50-day moving average (MA), which has made a bearish cross along with the 200-day MA and both are adding to resistance. However, there is a significant bullish divergence developing in the daily RSI, indicating that the price could soon break out. If so, it would first face resistance from the 200-day MA at ₿0.0095, before reaching a major horizontal resistance area at ₿0.0198.

Cryptocurrency trader @glowto1994 outlined a movement for DASH, in which the price does one final drop before bouncing strongly upwards. This would fit with our daily analysis that predicts one final drop inside the ₿0.0073 support area before a breakout from the resistance line.

Short-Term Movement & Conclusion

In the short-term, the price has broken down from an ascending support line, suggesting that the short-term upward move has ended. The closest support area is found at ₿0.0074, the 0.786 Fib level of the entire move. A decrease towards this area, or the previously mentioned ₿0.0072 level, would cause a short-term double-bottom. After this, the DASH price is expected to move upwards.

To conclude, after a short-term retracement, DASH is expected to gradually move upwards and eventually break out from its long-term descending resistance line. Click here for BeInCrypto’s latest Bitcoin analysis!