Trade Recommendation: Dash
The Dash/Bitcoin pair (DASH/BTC) shed over 56% of its value this year when it dropped to 0.33412 on July 12. This plummet can be disheartening even to the avid supporter. However, it seems that worst is over for the market. We have the technicals to support our view.
Technical analysis reveal that Dash/Bitcoin may be bottoming out at 0.0355 support. There are multiple bullish signals that support this claim.
First, we see bulls coming to the rescue when the pair dropped below 0.0355 support. The price action has trapped bears who sold their positions when the market breached that level. Based on experience, a false breakdown is often followed by a sharp rally.
Second, the bear trap was sprung just as DASH/BTC flashed extreme oversold conditions. The RSI quickly jumped and managed to breach its resistance. This is a good sign that bulls are gaining momentum.
In addition, we can see a large bullish divergence on the daily MACD. This indicates the market’s underlying strength. Lastly, the 4-day, 8-day, and 21-day moving averages are starting to the attach to the daily candle’s body. All of them are trending up.
The strategy is to buy as close to 0.0355 as possible. If bulls continue to defend this level, they will gather the momentum they need to climb to our target of 0.045. Take that out and we have a clear path to 0.055.
The process may take less than a month.
Daily Chart of DASH/BTC on Binance
As of this writing, the Dash/Bitcoin pair is trading at 0.03606 on Binance.
Summary of Strategy
Buy: As close to 0.0355 as possible.
Target: 0.045 and then 0.055.
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.