Trade Recommendation: Dash
Dash (DASH/BTC) may look like it’s dying but it’s not. On the contrary, the market looks really exciting. Dash recorded new bear market lows of 0.0166 on May 11, 2019. The price action may have spooked weak hands but those with experience trading markets know that something shocking is brewing.
Technical analysis shows that DASH/BTC has recovered the support of 0.0178. This area is crucial for the market because it was the yearly support of 2018. This is why it came as a surprise to us when bears were able to drive Dash below 0.0178 on May 11th.
To confirm the breakdown, we looked at the volume and saw that it was anemic. On top of that, the daily RSI was in extreme oversold territory. When we noticed these signals, we were convinced that the move below 0.0178 was a false breakdown or a Wyckoff spring.
If our read is correct, Dash must no longer trade below 0.0178. Also, in the next few days, we expect the market to stabilize around the support. Should the market move as expected, we will likely see fireworks in the next few weeks.
The strategy is to buy as close to 0.0178 as possible. If bulls can keep the market from falling lower, they will likely generate a rally to our targets of 0.023295 and 0.0289.
The process may take less than a month.
Daily Chart of Dash/Bitcoin on Binance
As of this writing, the Dash/Bitcoin pair is trading at 0.01836786 on Binance.
Summary of Strategy
Buy: As close to 0.0178 as possible.
Targets: 0.023295 and 0.0289.
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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