DASH Fails to Confirm Bullish Trend Despite Breakout

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In Brief
  • DASH has broken out from and validated a major descending resistance line.

  • Technical indicators on the daily time-frame are bullish.

  • DASH/BTC is trading inside support at ₿0.00625.

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The DASH (DASH) price has been decreasing since reaching a high of $106.36 on Aug 8.

While there are some bullish reversal signs present, the upward trend is not yet confirmed.

DASH Long-Term Levels

The DASH price has broken out from a long-term descending resistance line which had been in place since May 2019 and has returned to validate it as support.

The main support and resistance levels are found at $60 and $140, with a minor resistance level found at $97.50.



Technical indicators are turning bearish. The RSI has dropped below 50 and the Stochastic Oscillator is in the process of making a bearish cross. A breakdown from the support line would complete the cross, while a bounce would likely reject it.

DASH Chart By TradingView

Possible Breakout on the Daily Chart

The daily chart shows another descending resistance line and a minor support level at $65, above which the price is currently trading.

Technical indicators are bullish, suggesting that a breakout is near. There is a bullish divergence in both the RSI and MACD, while the Stochastic Oscillator has made a bullish cross.

If the price breaks out, the $97.50 resistance area outlined in the previous section would be a likely target, with $80 serving as a minor resistance level.

DASH Chart By TradingView

Wave Count

The DASH price is seemingly completing a W-X-Y corrective pattern that began on March 13. So far, the price has completed the W wave (white) and is in the process of completing the X wave.

A likely level for the completion would be at $59, the 0.618 Fib level of the entire upward movement.

DASH Chart By TradingView

A closer look at the X wave (white in the previous image) reveals that the fifth and final sub-wave is likely to complete the pattern

A breakout above the wave 1 low (red) of $70.79 would invalidate this pattern.

DASH Chart By TradingView

DASH/BTC

The DASH price is currently sitting at support near ₿0.00625 and has been following a descending resistance line since July 27. A breakdown from the current support could take the price all the way back to ₿0.0057.

Technical indicators give ambiguous signs. There is a bullish divergence in both the RSI and MACD, but the Stochastic Oscillator has made a bearish cross.

Therefore, we cannot determine whether DASH will break out from the resistance line or break down from the support area.

DASH Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

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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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