For trend definition in this cryptocurrency, there are two levels that must be watched. Our first support level at $950 and the 3rd Fibonacci extension level at $1500 which is also our potential take profit level assuming buyers get in shape and drive prices higher.
As you can see, even after DASH over-valuation during the festive period, prices didn’t bulge and ended up testing $1500 before trickling to current levels. Nonetheless, one thing should come to our attention: even though DASH buyers have been on the driving seat for sometimes now, we expect prices to retest the 3rd extension level at $1500 and dip towards the middle BB which is our main support line.
Coming back to the present, that long lower wick hint of buy pressure in lower time frames which is encouraging. After all that is what we want and we should be looking to initiate long positions in lower time frame and sync with the general trend.
Zooming in to the daily chart and apparently there is an accumulation with DASH moving within a $350 range with limits at $950 and $1300. The middle BB will be utilized once this horizontal consolidation comes to an end but for now, it is useless. If today’s candlestick end up bullish, the better for buyers desirous of plucking DASH at a discount after that fake break out at $1300 earlier this week.
The accumulation in the daily chart is clear in the 4HR chart and as long as sellers continue to drive prices lower away from $1300, the better for longs.
However, as common with consolidation trades, close below $950 can ruin that projection and all we need is a rebound from main support if there are chances of higher highs going forward.
If buyers are to recover, then we must see a bullish candlestick closing above $1075-our previous main resistance line and that candlestick must be confirmed. After that, buyers can initiate longs with stops at $1000.