Dash is shedding gains at press time, but looks set to defend $600 levels.
As per CoinMarketCap, the world’s fifth largest cryptocurrency by market capitalization is trading at roughly $685 – down 9.3 percent on the day – after rising to an all-time high of $826.95 at 09:59 UTC.
But whatever the reason, price chart analysis also favors further upside, albeit after a healthy technical correction to $600 levels.
The above chart shows:
- A bearish price-relative strength index (RSI) divergence.
- 50-MA, 100-MA, and 200-MA are sloping upwards and positioned one below the other in favor of the bulls.
- The rising trendline (blue line) could offer support at $583 levels.
On the chart above:
- 5-MA and 10-MA are curled upwards in favor of the bulls.
- The RSI is overbought.
- Two consecutive candles with higher shadows (big gap between the close and intra-day high) indicate bull market exhaustion.
- Prices are struggling to hold gains above $696 (161.8% Fib extension).
Dash could drop to $600-$580 levels, courtesy of the bull market exhaustion on the daily chart and the bearish price RSI divergence on the 4-hour chart.
The base appears to have shifted higher to $600 levels – i.e. dips below $600-$580 could be short-lived as indicated by a pattern of higher lows (rising trend line on the 4-hour chart) and upward sloping moving averages.
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