Dash continues with its strong rebound from the oversold levels, decisively breaching the target of 0.01330BTC. On the back of strong momentum and supported by heavy volume, Dash has soared more than 18% in the past 24 hours.
With bulls continuously pushing for higher highs, Dash is now worth 0.01500BTC.
As the cryptocurrency successively crosses previous peaks, it becomes imperative from a trading viewpoint to examine whether it has become overbought in the near term. Technical indicators overlaid on the 360-minute DRK/BTC price chart reveal that it may be time to take some money off the table.
Dash Chart Structure – As can be seen, the emphatic comeback from buyers has pushed the cryptocurrency higher above the previous two peaks (marked as the two horizontal lines). I had earlier mentioned that crossing and sustaining above the past highs is a pre-requisite for a trend reversal, and Dash may just be in the process of doing that.
Bollinger Bands – Dash has taken support from the 20-6h simple moving average and risen above the upper range of the Bollinger Band. The upper range of BB acts as a resistance level in the near-term and an extended stretch of the band may result in the price easing down.
Volume – In the last 5 bullish candles, volume has been pretty strong, confirming that the bears are running for cover amid a huge buying pressure.
Relative Strength Index – Dash has definitely entered the overbought territory with the latest RSI reading coming in at 73.92.
From the technical considerations above, it can be inferred that Dash is expensive at current levels and bouts of profit booking may hit the cryptocurrency and buyers. The sellers seem to have lost all control and, therefore, bearish bets must be closed. Long positions can be considered on dips by placing a stop-loss below 0.013BTC.