DASH rallied during the trading session on Wednesday, reaching as high as $372 at one point.
However, we continue to see sellers in that area, and we are starting to roll over on the hourly chart. This market is a bit concerning to me, as we cannot break above resistance, but more importantly, last week when the other crypto currencies were rallying rather significantly, DASH sat still for the most part with a slightly upward bend.
That shows underperformance, and underperformance is something that you should avoid. While I do think that eventually we will go higher in this market as the US dollar is getting pummeled in general, the reality is that Ethereum and Bitcoin will both probably outperform DASH in the foreseeable future.
However, some people would make the argument that it has some “catching up to do”, but generally you should always try to find the best performers in a sector when trading stocks, and crypto currencies are going to be any different.
I think there is support below, perhaps at the $330 level, but most certainly at the $300 level. A breakdown below $300, this market could breakdown rather significantly. You can see that on the hourly chart we formed several long wicks, and that show signs of exhaustion. That’s why a break above the highs of the day would be very impressive, because it was the market overcoming all those obstacles that had previously kept it down.
However, until it happens I will be very suspicious of rallies. While I may not outright want to short this currency, it might be better left alone until we can form a significant basing pattern, which we have not done so yet. However, I would keep this market in mind for a longer-term position, and wait for a significant support of level to turn the market around from an investment standpoint.
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