DASH Near Make-or-Break Level that Could Determine Its Trend

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In Brief
  • There is support and resistance at $62 and $86 respectively.

  • The price is trading inside either a descending wedge or triangle.

  • DASH is likely approaching the end of its correction.

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Dash (DASH) looks to be approaching the apex of its current pattern, making a decisive move outside this pattern crucial in determining the future trend.

The DASH price has been decreasing alongside a descending resistance line since reaching $198.80 in May 2019. The slope of the line is not entirely clear due to the presence of many long upper wicks.

DASH Long-Term Levels

More recently, the price began an upward move in the period between March-Aug 2020. Currently, DASH is approaching the $61 support level, which is the 0.618 Fib level of the aforementioned upward move.

If the area is successful in initiating a bounce and DASH begins to move upwards, the closest resistance level would be found at $86, coinciding with the descending resistance line.



DASH Chart By TradingView

Lack Of Confirmation

The daily time-frame offers some signs of a possible bullish reversal, but do not confirm it. The strongest signal is given by the growing bullish divergence in the RSI. Furthermore, the MACD has also generated some bullish divergence and is increasing.

However, the Stochastic Oscillator has made a bearish cross once again, casting some doubt on the bullish scenario.

DASH Chart By TradingView

The daily chart also shows a possible descending wedge, which has an unusual formation. The price is rapidly approaching the point of convergence between resistance and support, so a decisive move should occur soon.

DASH Chart By TradingView

However, the six-hour chart shows a possible descending triangle, which is normally considered a bearish pattern. In addition, each bounce from the minor $65 area has been weaker than the preceding one, a sign of dissipating buyer strength.

Therefore, a movement outside of either the resistance or the support levels will be required to determine the future trend.

DASH Chart By TradingView

Wave Count

Cryptocurrency trader @Tradingsurfers outlined a DASH chart which shows a long-term wave count that shows two options, a bullish scenario towards new yearly highs and a bearish trend towards new yearly lows.

Source: Twitter

The most likely count, outlined in detail in the previous analysis suggests that DASH is completing a W-X-Y correction (shown in black below), and is currently in the final C wave (shown in blue).

So far, the price has reached a wave A low of $61.30.

DASH Chart By TradingView

A closer look reveals that the price is likely in the fifth and final sub-wave (red) of wave C, and will eventually begin to increase after completing another lower low.

A likely target for the bottom of this movement would be found between $55.20-$59 the 2.21-2.61 Fib levels of wave 1. The latter target would also coincide with the long-term support level outlined in the first section.

DASH Chart By TradingView

To conclude, until the DASH price breaks out or down from the current pattern, the direction of the future movement cannot be accurately determined due to ambiguous signs.

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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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