Trade Recommendation: Dash

Dash

Our May 23, 2019 trade recommendation for Dash (DASH/USD) hit its initial target. On June 26th, the market climbed as high as $186.83. Those who followed the trade plan grew their investments by over 34 percent in a little over a month.

Dash has been correcting since it hit our initial target price. The market has plunged so deep that it is now ripe for bottom-picking. It is also flashing signals that tell us that a bounce is on the horizon.

Technical analysis shows that DASH/USD is respecting support of $95. We believe that the cryptocurrency will continue to do so for the following reasons.

First, Dash is extremely oversold on the daily RSI. This tells us that bears are overextended and we can foresee selling relief soon. If supply dwindles over the next few days as expected, then bulls will have an opening to push the price up.

Also, this is the first time that the market is retesting $95 as support. This means that the demand area is still fresh and buyers are very likely to emerge to defend this price level. This gives us more motivation to consider this crypto token.

Therefore, the strategy is to buy as close to support of $95 as possible. As long as bulls can keep the market from falling further, it is likely that Dash will bounce to our initial target of $140. Take that out and $185 is next.

The process may take a month.

Daily Chart of Dash/US Dollar on Bitfinex

Dash crypto chart
As of this writing, the Dash/US Dollar pair is trading at $98.04 on Bitfinex.

Summary of Strategy

Buy: As close to $95 as possible.
Targets: $140 and $185.
Stop: $91

 

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.