DENT Makes Another Attempt at Moving Above Resistance

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In Brief
  • DENT is facing resistance at $0.0073 and $0.115

  • It has broken out from a short-term descending wedge.

  • DENT is in wave five of a bullish impulse.

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Dent (DENT) initially broke out above the $0.0073 resistance area on Aug. 14 but fell back below it the next day. This caused the previous movement to become a deviation only.

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However, it has broken out from a short-term descending wedge and is currently making another attempt at reclaiming the $0.0073 horizontal resistance area.

Deviation above resistance

DENT has been increasing since July 20. The upward movement accelerated on Aug. 11 and a high of $0.0089 was reached four days later.

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Initially, it seemed that the token had managed to break out from the $0.0072 resistance area. However, it fell back below the area almost immediately afterwards, causing a deviation (red circle) above the resistance area. 

Be that as it may, DENT is in the process of making another breakout attempt after bouncing at the supertrend line (green). However, the MACD and RSI are relatively neutral. While the former is positive and the latter is above 50, neither are moving upwards. 

If a breakout were to occur, the next resistance would be at $0.0115.

Chart By TradingView

Short-term breakout

After the rejection, DENT consolidated inside a short-term descending wedge. The descending wedge is considered a bullish reversal pattern. 

The short-term six-hour chart shows that the token broke out from the wedge on Sept. 2 and validated it as support afterwards.

Furthermore, it validated the minor $0.0065 area as support once more on Sept. 6, creating a long lower wick in the process (green icon). 

In addition to this, the RSI has decisively moved above the 50 line and the MACD is positive. 

These are short-term bullish signs that indicate that another breakout attempt is likely.

Chart By TradingView

DENT wave count

Cryptocurrency trader @TheTradingHubb outlined a DENT chart, stating that wave four is likely nearing its end.

Source: Twitter

The most likely wave count does indeed suggest that wave four is complete. In this case, the breakout from the wedge marked the beginning of wave five. 

The most likely targets for the top of the upward movement are at $0.01 and $0.01808 

The target is found using the 1.61 external Fib retracement (black) on wave four and the 0.618 projection of the length of waves 1-3 (orange).

Afterwards, DENT would be expected to decrease in the short-term.

Chart By TradingView

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

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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