DASH May Have Peaked a Little Early (DASH Price Analysis for March 19, 2019)

Here is the price outlook for the period of Mar 12 to Mar 19: In our Mar 12 analysis, we predicted that the price would increase and eventually reach $91. Our prediction was validated later that day when the price reached a high of $94. Based on today’s analysis, the price of DASH is likely to see decreases in the future.

Key Highlights For March 19

• The price has been on an upward trend since Mar 14.
• It is trading inside an ascending wedge.
• There is bearish divergence developing in the MACD and the RSI.
• There is resistance near $95 and $103.
• There is support near $88 and $83.

Horizontal Resistance

The price of Dash (DASH) on Binance is analyzed at one-hour intervals from Mar 13 to Mar 18. The price reached a high of $95.79 on Mar 13. A gradual decrease ensued before price made another high of $96.62 on Mar 18. Tracing these highs gives us an ascending resistance line. The resistance line can act as a ceiling to price. It predicts the upper limits of price. Theoretically, the price should not move above resistance. Furthermore, it predicts the rate of price increase. Initially, the price increased at a slower rate than predicted by the line, but it reverted back to the mean on Mar 18. It is unlikely that the price moves above the resistance line unless a breakout occurs. The resistance line alone is not sufficient in predicting if a breakout will occur.

Ascending Wedge

The price reached a low of $87.94 on Mar 14. A gradual upward move ensued. Several market cycles have been completed since, with each low being higher than the previous one. Tracing the closing prices corresponding to these lows gives us an ascending support line. Similar to the resistance line, the support line acts as a floor to price, preventing further downward movement, and measuring the rate of price increase. The price has increased at the same rate as predicted by the support line. The resistance and support lines combine to create an ascending wedge. This is a bearish pattern, making price decreases more likely than increases. The wedge is better at predicting price fluctuations than the resistance and support lines alone. Price is likely to trade within the confines of the ascending wedge until a point of convergence between resistance and support. At that point, a breakdown is likely to occur. 

Looking Out For a Reversal

Combining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. On Mar 12, the price made a high of $94.1. It made another high of $96.62 on Mar 18. Similarly, the MACD and the RSI made the first high on Mar 12. However, they have proceeded to make lower highs since. This is known as bearish divergence and often precedes drops in price. It is especially effective if both indicators are in agreement and bearish divergence occurs in a bearish pattern and vice versa. This is the case with DASH since the ascending wedge is a bearish pattern. These indicators appear to confirm the forthcoming price decreases and eventual breakdown from the wedge.

Future Movements

In order to predict possible future reversal areas, the price of DASH on Binance was analyzed at four-hour intervals from Nov 27, 2018 to Mar 19, 2019.   Resistance and support areas are formed when the price revisits the same level several times. The first resistance area is found near $95, where the price is currently trading. The next one is found near $103. If the price breaks out from the wedge, these would provide likely reversal areas. According to our analysis, it is unlikely that the price will reach this level soon. Conversely, the closest support area is found near $87. If the price were to breakdown from the wedge, this would provide a likely reversal area. 

Summary of Analysis

Based on this analysis, a breakdown below the wedge seems likely. If the price breaks down from the wedge, this prediction will be partially validated. If it reaches the support area near $88, it will be fully validated. The prediction would be invalidated by a breakout above the wedge. Do you think the price of DASH will break down from the ascending wedge? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.