DASH Price Analysis: DASH/USD Bulls Capitalize on Bullish Set Up, Extending on Double Digit Gains

 

  • DASH/USD sees chunky double-digit gains over the past two sessions, and further upside is still eyed.
  • Market satisfaction with Dash announcing new transactions support for Venezuelan citizens. 

DASH bulls have demonstrated the strength of their run over the past two sessions now. DASH/USD has gained well into the double-digits, over 11% since 4th November, when life kicked back into the bulls. The price has pushed to its highest levels seen since 16th October, when the market re-entered a bearish trend.

Dash Related News Flow

Recently the Dash foundation announced the launch of ‘Dash Text’, a new product that will facilitate transactions for Venezuelan citizens, allowing them to send and receive DASH via SMS with no requirement for the use of internet or a smartphone. This move by Dash assisting them further in their growing presence within the country that is so dependent on cryptocurrency. All as reported by the CCN team.

Technical Review – DASH/USD

DASH/USD 4-hour chart

On the back of the above-mentioned news, the price on Sunday observed a chunky pick up in volume. DASH/USD rallied over 12%, as the market digested the update hitting the news wires. Jumping from $152.87, up to a high on Sunday of $172.51, into a strong touted supply area. This is seen running from the early $170 mark, up to $173.50.

Price action for DASH/USD had initially cooled somewhat, after the high print on Sunday 4th October. A small period of consolidation was observed, between 4th and 6th November – today. During this, DASH/USD formed a bullish pennant pattern formation, which was breach in the session. Bulls ran through the upper resistance at the time, which was seen around $167.20.

In the most recent bull run, which still has much momentum behind it, DASH/USD took out a running descending trend line to the upside. This had been in play since 29th September, when the market had re-entered a firm downward trend. DASH/USD had dropped over 20% below this trend line, barring the somewhat of a freak spike on 15th October, seen across the market.

Upside Targets

Looking to the upside, should the price see a firm daily closure above the mentioned descending trend line, it will likely keep the door open to further buying pressure. The bulls next barrier is not then seen until the very high $180 region, early $190 area. DASH/USD last traded here on 6th October, a very short-lived moment above the descending trend line.

Support Levels

Above the breached descending trend line, this could accommodate a new area of support tracking around $167.80. A failure to hold here would likely be very punishing to say the least. Typically, fast chunky advances such as the most recent for DASH/USD, tend to be vulnerable to heavier falls, should the bears regain control. Eyes would then potentially be on a complete reversal of the latest bull run.

Disclaimer: The author 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.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.