DASH (DASH/USD) Analysis December 5, 2017

on Dec 4, 2017
Updated: Sep 19, 2019

In 4 short weeks, DASH has broken several technical barriers and is set for even more gains. Well, before the catapult is released, they often load and stretch it before releasing right? In my opinion, the loading up and the stretching will happen early this month before the rally resumes.

First off, notice that while DASH rallied and tested $870, three things happened. August’s highs of $415 was easily broken and later the first Fibonacci extension level at $660 was hit.

At current price levels, this previous resistance is our strong support. Should prices correct this is where DASH is theoretically expected to find reprieve. With recent volatility, the 20 period MA is yet to catch up. The most important observation in the weekly chart is the way price action is banding along the upper BB.

The again, last week was the fourth consecutive time for these bullish candlesticks to close above the upper BB. This means the even if stochastics show a strong bullish momentum, DASH is over-priced. With this, bulls should be cautious in the coming weeks.

The daily chart looks interesting. Notice those higher highs oscillating within a rising channel accompanied by buy momentum as shown by those stochastics.

In lower time frames, these swings within the lower and upper limits of the channel are waves that can easily tell us if we are on the last stage of a short term bullish trend.

The reason for this possible correction is the potentially over-stretched price action after a 4X increase in price after November 5. Currently, we can notice some degree of lower highs relative to upper BB happening from December 1.

It is evident that the slowdown in the daily chart is actually caused by a bearish divergence in the 4HR chart. You see that after November 26, momentum decreased while DASH continued to accelerate.

Price action is now dropping lower and earlier today, DASH bears broke and closed below the 20 period MA. This is a feat because it is the first time price action-and USD bulls- have managed to close below this level in the past 30 days.