Technical Analysis and Market Entry: DASH/USDT Subject To A Bearish Breakout

Dash

DASH/USDT: Recent Price Behaviour

The DASH price has entered into a cooling period, following a significant bull run that commenced at the start of the month. DASH/USDT was trading down at depressed levels of $40, right at the beginning of the year. It came following a heavy beating in the price from the second half of 2019, after initially starting the year strong.

DASH/USDT bears drove the price from heights of $188 in June, down to $38 in December 2019. It was a significant drop of some 80%, a very punishing bear market, which was observed across the industry. The levels that the price was driven to were the lowest since March 2017. It was a time when DASH was somewhat still well and truly within its infancy.

DASH/USDT weekly chart.

Upside Targets Successfully Hit

In the last DASH article, we noted the upside targets of; $70.00, $80.00 and $85.00, which the bulls successfully achieved. The price was aggressively driven higher than these levels, after smashing the psychological $100 mark. DASH/USDT had jumped up to $144, the highest seen since July 2019, when the market was heading to the south.

Weekly Chart View

Price action via the weekly chart view remains very much bullish; there is a lack of signage that this will be changing anytime soon. DASH/USDT has been running to the upside for four straight weeks, the most consecutive run since April 2019. It gained as much as 271% within the noted period, as the bulls look to set out to recover the heavy beating at the back end of last year.

Last week’s bullish candlestick left a large wick to the upside, which could still technically be filled. However, the bulls are going to need to regather upside momentum, given this current cooling period being observed.

Daily Chart View

Over the last five days, DASH/USDT has been narrowing within a bearish pennant structure. The sellers are currently forcing a breach to the downside. A breakout and closure via the daily could prove to be punishing for the price. It could very much spark a fresh wave of selling pressure, resulting in a substantial price reversal.

DASH/USDT daily chart.

Trade Recommendation

Given the above-described pennant, short positions look appropriate, as the price further falls victim of touted profit-taking. Should the price see the daily closure outside of this pennant, then entries would be ideal around $105-103. Targets to the downside; $90 (50% Fibonacci) and $77.50 (61.85 Fibonacci). Stops to be placed at $111.50, just above the penannt.

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.