Trade Recommendation: Dash

Our January 28, 2019 trade recommendation for Dash (DASH/USD) hit both targets. The first one was achieved on February 11 when the market climbed as high as $80.695. The second target was hit on March 31 when Dash went as high as $110.56. Those who followed the trade recommendation grew their investments by as much as 70% in two months.

While Dash overshot our target, we’re not worried to miss out because technical indicators are overheated. A pullback is in order to keep the uptrend healthy. This will be our opportunity to buy the dip.

Technical analysis shows that DASH/USD is en route to the support of $104. We have this view for the following reasons.

First, the market tried several times in the last few days to take out resistance of $140. Unfortunately, bulls failed because Dash looks overextended. The large wicks on top of the candles’ bodies indicate the presence of sellers. In addition to that, the daily RSI is in extreme overbought territory. It must cool down to keep the uptrend sustainable.

The strategy is to be patient and buy as close to $104 as possible. This support will likely hold because Dash looks bullish. The successful retest of this area will confirm the market’s bullish sentiment. Thus, if bulls defend $104, the targets that you could be looking for are $140 and $185.

The process may take less than a month.

Daily Chart of Dash/US Dollar on Bitfinex

As of this writing, the Dash/US Dollar pair is trading at $133 on Bitfinex.

Summary of Strategy

Buy: As close to $104 as possible.

Targets: $140 and $185.

Stop: $99

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.