DASH Forms at the Bottom Exhaust Selling Pressure

DASH Forms at the Bottom Exhaust Selling Pressure

Key Resistance Levels: $70, $80, $90
Key Support Levels: $50, $30, $10

DASH/USD Price Long-term Trend: Bearish
DASH is in the last session of its bearish run. The coin fell to the low of $65 and later above the support of $60. The market consolidated above the support of $60 before it was eventually broken. The price made a retest at the broken support now resistance before dropping to the low of $40. DASH is now trading above the current support. A break below the current support will lead to further depreciation. On the other hand, if the current support holds, DASH will make an upward move to the previous highs.

DASH/USD - Daily Chart

Daily Chart Indicators Reading:
DASH is trading above 25% of the daily stochastic. The coin is now in a bullish momentum. The 21-day SMA and the 50-day SMA are sloping southward indicating the downward fall. Each time the moving average has a bearish crossover the coin will resume selling pressure. Meanwhile, the 21-day SMA also acts as a resistance to the coin.

DASH/USD Medium-term bias: Bearish
On the 4-hour chart, DASH dropped to a low at $48. The bulls pulled back and retested the resistance at $60. After the retest, the coin is making lower lows and lower highs. The pair finally dropped below $40 and the bulls pulled back and continued consolidation above it.

DASH/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 45 indicates that DASH is trading in the range-bound zone. The bulls have attempted the resistance line twice, a break above it will catapult the coin to a high of $60. In the same vein, a break below the current low at $38 will result in further depreciation. The simple moving averages are pointing southward indicating that the market is still bearish.

General Outlook for DASH
DASH is presumed to have reversed according to the Fibonacci tool. In July, a bull candlestick body tested the 0.786 retracement level. On that note, the coin was expected to trade and reverse at the 1.272 extension level or the $60 support level. Meanwhile, from the price action, DASH is trading above the $40 price level. This also explains that the selling pressure has been exhausted suggesting bulls to take control of price.

DASH Trade Signal
Instrument: DASH/USD
Order: Buy
Entry price: $41
Stop: $30
Target: $68

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.