- DASH is searching for a direction in the short-term after the late December rally fizzled out.
- On the daily time frame the DASH / USD pair is trading within a bullish descending wedge pattern
- $75.00 is the key resistance area to watch over the medium-term
DASH / USD Short-term price analysis
In the short-term, DASH is truly at a crossroads. The DASH / USD pair has reached the 50% retracement point of the December corrective rally, while also sitting mid-point inside a bullish falling wedge pattern.
A move above the $75.00 level is now needed to break out from the bullish wedge pattern, price is currently trading tentatively above the 50-period moving average on the four-hour time frame.
In order for prices to rise, bulls must now start to create bullish higher price highs and pierce the current 2019 trading high, found just above the $87.00 level.
All eyes are now fixed on the wedge pattern across the lower and higher time frames. A move below the wedge pattern would likely provoke sellers to test the multi-year trading lows created last month.
Key Moving Averages
The 200-period moving averages on the four-hour time frame coincide with the upper trendline of the wedge pattern, highlighting the significance of the $75.00 level.
The Relative Strength Index is currently indicating neutral intraday sentiment towards the pair.
DASH / USD Medium-term price analysis
Dash’s medium-term prospects reflect what is currently happening over the short-term horizon for the cryptocurrency. The DASH / USD pair is overwhelmingly bearish, with price trading under its key 200-day moving average and also crucially continuing to create bearish lower lows.
A falling wedge pattern can be seen on the daily chart; it now remains to be seen if the besieged cryptocurrency can finally rally.
A break below the wedge would likely see DASH falling to fresh multi-year lows. Until a bullish break above the wedge pattern has occurred and been technically confirmed, extreme caution is advised for bulls.
Aside from the wedge pattern on the daily time frame, the dominant theme when looking at DASH over the medium term is that sellers have been using any rallies to enter into the prevailing downtrend, creating bearish lower highs.
Key Moving Averages
Price currently trades below both the 50-day and 200-day moving averages which is consistent with the overall bearish medium-term theme.
The MACD appears to be shaping up for the next directional move as the histogram corrects back towards neutral territory.
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