DASH (DASH/USD) Analysis February 14, 2018

DASH (DASH/USD) Analysis February 14, 2018

Like IOTA, we are seeing the same development in DASHUSD and the importance of the middle BB cannot be understated.

As we have said on many occasions, as long as prices remain below the middle BB, we shall continue trading in the direction of the bearish break out as directed by week ending February 3 candlestick.

That long bearish engulfing candlestick is definitive and its highs shall be our important resistance. We say important because for prices to test $850, it must first close above the middle BB and the first Fibonacci extension line at $660.

It might look like a tall order but considering the rate of depreciation over the past few weeks, all we need is injection of bull pressure and if prices are nudged over $660, buyers can start picking long opportunities in lower time frames.

Same as the weekly chart, the liquidating effect of the middle BB is apparent. As you can see, not even the double bar bullish reversal pattern from February 5 and 6 forming right at the 78.6% Fibonacci retracement line at $520 could inject enough momentum for a close above it.

Fact is, on February 10, a doji candlestick was formed and that was confirmed on February 11. There is nothing that I can recommend in this accumulation besides patience even if momentum is pointing up from deep the oversold territory.

In my opinion, buy triggers should be above $750 or the 61.8% Fibonacci retracement line with any correction being buying opportunities.

It is important that buyers are trending above the main resistance trend line in our entry chart and while we expected higher highs, prices are finding a ceiling at $620.

This level is a strong resistance previous support and as long as prices find a selling effect, then there is a likelihood that a retracement back to the break out trend line at $420 is on the cards.

If not, then any break above $660 means we start buying with every correction back to $620.

By Chris Lewis
Chris has a degree in comupter science from Franklin University, USA and was a research analyst and financial trader for years before becoming a journalist. Today Chris focuses reports on cryptocurrency, technical analysis and market predictions.

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