Trade Recommendation: DASH/ETH
The Dash/Ethereum pair (DASH/ETH) ignited its bull run when it breached resistance of 1 on November 7, 2017. The price action attracted breakout traders and trend followers, which helped push the market to as high as 1.89119 on November 12. In just four days, the market grew by almost 90%. It was enough for those who bought the breakout to take profits.
As breakout traders locked in gains, the market fell to 1.186 on December 14. Bottom pickers bought the dip and they were able to inspire a massive rally that lifted the market to as high as 2.4889 on December 21. Unfortunately for buyers at this level, profit taking commenced and the market closed at 1.71078 on the same day. The pair’s inability to close above 1.90 was a clear bearish signal. Sensing that bulls were tapped out, DASH/ETH crashed.
Technical analysis reveal that Dash/Ethereum appears to have bottomed out at 0.13001 on February 1, 2018. It then created a base above 0.60 support. Recently, the pair has been showing surges in volume, which happened numerous times in March. This may indicate that the market is preparing for launch. Moreover, RSI has been printing one higher lows after another, which suggests that the market is building up momentum.
The strategy is to wait and buy the breakout at 1.00 as long as the market prints 5,000 units of Dash. Those who bought the base would most likely dump some of their positions at the resistance. The market needs buyers to absorb the selling pressure. If the breakout is successful, the target is 1.50. The process may take more than a month.
Daily Chart of DASH/ETH on Binance
As of this writing, the Dash/Ethereum pair is trading at 0.78996 on Binance.
Summary of Strategy
Buy: As close to 1.00 as possible.
Stop: 0.948 after the breakout.
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.