Trade Recommendation: Dash
Our December 10, 2018 trade recommendation for Dash (DASH/USD) hit its mark on December 20. On that day, the market climbed to as high as $100.201. Those who were able to follow our trade recommendation grew their investments by over 80% in ten days.
Nevertheless, if there’s anything we’ve learned last year in trading crypto, it’s this: everything that goes up, eventually goes down. We are starting to see this cycle unfold in Dash as it succumbed to the top end of the range.
Technical analysis shows that DASH/USD is en route to the lows of $56. This view comes after the market failed to hold the range midpoint of $79 on January 10, 2019. After breaking down from the range midpoint, this crypto printed a bear flag as it consolidated between $74.50 and $67. Today, we see the price break down from the bear flag as it breached the horizontal support. With this bearish move, this altcoin is likely to head down to $56.
In addition, all of our three moving averages on the 12-hour chart are acting as resistances (50 MA, 100 MA, and 200 MA). They will make it difficult for Dash to mount any significant rally.
The strategy is to be patient and buy as close to $56 as possible. This support will likely hold because we can expect Dash to be in extreme oversold territory once it hits this price area. If bulls defend $56, they would have formed a durable bottom that might inspire a rally to our target of $79. Take that out and the next target is $103.
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 $65.84 on Kraken.
Summary of Strategy
Buy: As close to $56 as possible.
Targets: $79 and $103.
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.