Trade Recommendation: Dash
Dash (DASH/USD) appears to be in a freefall. It dropped to as low as $57 on December 6, 2018. At that price, the market was down by over 95% from the 2018 high of $1,400. On the surface, this cryptocurrency looks like it is ready to die. A closer look, however, shows us that Dash is ready to be reborn.
Technical analysis shows that Dash may have bottomed out on December 6. We have several reasons to support this view.
First, we look at the volume of the weeks leading to the drop of $56.
On the week of November 19, Dash printed volume that’s over 174% of its weekly average. More importantly, the volume buzz was the largest that this coin printed since April 2017. Then a couple of weeks later, the market generated volume that’s over 188% of the weekly average. It was also greater than the volume buzz of the week of November 19. All in all, the combined volume of those two weeks screams capitulation.
On top of that, the move down to $56 completed the market cycle. Dash has given up all the gains it made last year. With a clean slate, the smart money can start accumulating at current levels. It looks like they’re already doing that. The sudden volume uptick on December 7 is a clue that someone is buying in bulk.
The strategy is to buy as close to $56 as possible. It is very likely that the market will revisit that level again soon. If bulls stay above it, then we might see a quick rally to our target of $86.50.
The process may take a month.
Daily Chart of Dash/US Dollar on Kraken
As of this writing, the Dash/US Dollar pair is trading at $70.45 on Kraken.
Summary of Strategy
Buy: As close to $56 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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