DASH is approaching a crucial level that could determine its trend
There is support at $ 62 and resistance at $ 86.
The price evolves in a wedge or a descending triangle.
DASH is probably nearing the end of his correction
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The course Bitcoin Billionaire seems to approach the top of its current pattern. A decisive move out of the latter will therefore be crucial in determining its next trend.
DASH price has been declining along a resistance line from its low at $ 198.80 in May 2019. The slope of this line is not entirely clear due to the presence of many long upper strands.
Long-term levels of DASH
More recently, the price has started an upward movement, between March and August 2020. It is now approaching the support of $ 61, which corresponds to the fibonacci level of the aforementioned upward movement.
If this zone manages to start a rebound and the DASH starts to move up, the closest resistance zone will be at $ 86, coinciding with the descending resistance line.
The daily timescale offers signs of a possible bullish reversal, but these are unconfirmed. The strongest signal comes from the increasing bullish divergence in the RSI. Additionally, the MACD has also generated bullish divergences, and is found rising.
That said, the Stochastic Oscillator has formed a bearish cross once more, casting doubts on the bullish scenario
The daily chart shows a possible downward wedge, which has an unusual pattern. Price is rapidly approaching the point where resistance and support converge, indicating that a decisive move could take place shortly.
That being said, the six hour chart does display a possible descending triangle, which is normally considered to be a bearish pattern. Plus, every bounce in the $ 65 minor area has been weaker than the last. This is a sign of decreasing buying pressure
Thus, a move out of the resistance or support areas will be necessary to determine the future trend.
Cryptocurrency trader @Tradingsurfers relieved a chart showing a long-term wave count. The latter presents two options: a bullish scenario towards new annual highs, and a bearish scenario towards new annual lows.
The most plausible count suggests that the DASH would be completing a correction in WXY (in black below), and is currently in the final C wave (in blue).
So far, the price has reached the bottom of wave A, located at $ 61.30.
Further observation indicates that price is likely in the 5th and final sub-wave (in red) of Wave C, and will likely eventually rise after descending to a new low.
A probable target for the bottom of this movement would be between $ 55.20 and $ 59, or the fibonacci levels 2.21 and 2.61 of wave 1. This target also coincides with the long-term support level outlined in the first section.