Home » Cryptocurrency » DASH (DASH/USD) Analysis February 5, 2018

DASH (DASH/USD) Analysis February 5, 2018

Chris Lewis
  • February 2nd, 12:06
  • Last Updated: September 18th, 19:33

DASH is literally falling like a rock and while prices are at key levels, we shall be watching and waiting to see if prices will trickle and close below the middle BB by this week’s close. It will be nothing short of sell frenzy if sellers somehow manage to be confirmed below January 21 lows at around $600.

After all, looking at the way price action has been set up, it is quickly becoming apparent that that last week’s buy pressure was another selling opportunity.

Since sellers are determined to close below the 1st Fibonacci extension level at around $660, bears should be angling at the August highs at around $400.

That is very possible now that sell momentum doesn’t look to be slowing down with %k and %d diverging with every printed bear candlestick.

In the daily chart, there are several key levels that if tested could relieve buyers. The first is the obvious middle BB and the second is the reaction at 78.6% Retracement at around $530.

For the better part of Q4, prices were steadily inching up above the middle BB, peaked and as it is, this flexible resistance line is a perfect zone for liquidating any bullish attempts.

Since the general trend is bullish, the Fibonacci retracement line indicates that bears have recouped more than 70% of the previous bull train. At the moment, considering the strong bear pressure, all focus will be on how prices react at around $525.

Look at the trickle down and the super reaction following the break below the descending wedge. Notice that, prior to this DASH capitulation, prices we confined within an $80 range from January 24 to 30 resulting in a nice BB squeeze.

The result, an explosion to the down side and considering the momentum and the obvious banding, we expect support first at $525 as mentioned and then later August highs at $420 if Bears remain relentless.

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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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