The Dash/US Dollar pair (DASH/US Dollar) ignited its bull run on November 8, 2017 when it breached resistance of $300. The breakout gathered enough momentum to push the price up to $1,625 on December 20, 2017. In a little over a month, the market gained 441.67% in value. Those who bought the breakout and followed the trend were ecstatic to take profits.
Faced with intense selling pressure, Dash/USD dropped to $875 on December 22. Even though bottom fishers bought the dip, they were only able to lift the market to $1,400 on January 13, 2018. The lower high snuffed out the market’s bullish steam. Participants responded by dumping positions. Consequently, the pair generated consecutive lower highs and lower lows, but it seems that the bottom is in sight.
Technical analysis show that Dash/US Dollar may have capitulated on March 30, 2018 when it printed over 250% of its average daily volume. More importantly, the capitulation occured above support of $300. This suggests that bulls are prepared to defend this level. While the market went below the support, it is working hard to show that the move below was a false breakdown.
The strategy is to buy as close to $300 as possible. If bulls defend this level, they will likely create a base to climb to our target of $500. DASH/USD will most likely range trade for now before it can make its notable move up.
Daily Chart of DASH/USD on Kraken
As of this writing, the Dash/US Dollar pair is trading at $307.05 on Kraken.
Summary of Strategy
Buy: As close to $300 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.