Trade Recommendation: DASH
The Dash/US Dollar (DASH/USD) pair has been hit hard this year, losing 78.87% of its value when it dropped to $217 on June 29, 2018. While the tremendous loss would repel some investors, it is at this point where the market offers the maximum financial opportunity. We have the technicals to support this claim.
Technical analysis show that Dash/US Dollar is carving a bottom at $230 support. We have multiple bullish signals that support this view.
First, bulls showed up when the market broke the support. Even though the market briefly went below $230 on June 29, bulls came to the rescue and lifted it above the support. Bears tried to push the market lower on June 30 and July 1 but bulls preserved the support with heavy volume.
The heavy volume pushed the price higher and as a result, DASH/USD managed to break out of the falling wedge pattern. This bullish move is further supported by technical indicators. On the daily MACD, we can see a bullish divergence and a bullish cross. On top of that, the daily RSI is also flashing a bullish divergence while turning the 42 resistance into support.
The strategy is to buy as close to $230 support as possible. If bulls continue to stay above this level, they will attract the momentum required to climb to our initial target of $320. However, it is also possible that the expected rally may go as high as $385.
The process may take a month.
Daily Chart of DASH/USD on Kraken
As of this writing, the Dash/US Dollar pair is trading at $244.26 on Kraken.
Summary of Strategy
Buy: As close to $230 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.
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