Trade Recommendation: Dash

dash coin

Our April 5, 2019 trade recommendation for Dash (DASH/USD) hit its initial target. On May 19th, the market climbed as high as $177.25. Those who stuck to the trading plan grew their investments by over 65% in about a month and a half.

Now, the second target of $185 still applies but Dash is starting to show signs of bullish exhaustion. It is currently trading near overbought conditions. Also, the last three daily candles have been red. These are signals that tell us that the market is correcting. We’ll use this to our advantage by buying the dip.

Technical analysis shows that DASH/USD has broken out of a large cup and handle pattern on the daily chart when it took out resistance of $135 on May 14th. This triggered a breakout rally that drove Dash to $177.25 on May 19th.

As mentioned, the breakout rally is fading. We’ll try to catch the market at the breakout point when it is likely to convert the previous resistance into support. $135 is very likely to hold because there are three supports converging at that level. The horizontal support, the diagonal support, and the 50-day moving average acting as support.

Therefore, the strategy is to be patient and buy as close to $135 as possible. If bulls defend $135, the targets to look for are $185 and $225.

The process may take a month.

Daily Chart of Dash/US Dollar on Bitfinex

Dash chart
As of this writing, the Dash/US Dollar pair is trading at $160.52 on Bitfinex.

Summary of Strategy

Buy: As close to $135 as possible.
Targets: $185 and $225.
Stop: $128

 

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.