- Dash continues to struggle, as the shoulder resistance (highlighted in yesterday’s analysis) at 0.0125BTC stalled upsides on many occasions.
- As long as the prices are below 0.0125BTC, Dash might head lower.
Our highlighted head and shoulders pattern is still valid, and if bears gain control, we might witness a pullback in Dash.
0.0125BTC as a Hurdle
Dash settled above the 100 hourly simple moving average, which took the price towards 0.0125BTC. The mentioned level represents a shoulder resistance area of the head and shoulders pattern as highlighted in the chart attached. 0.0125BTC represents a major barrier for buyers, but sellers need to be also cautious as there is a monster support forming around the 100 SMA.
No doubt, there is a break on the cards, and it would be very interesting to see which side Dash ends up. As long as the price is below 0.0125BTC, the chance of it moving lower is more. If buyers gain pace and manage to take Dash higher, then a break above 0.0125BTC could be very crucial. It would invalidate the Head and Shoulders pattern.
The shoulder resistance area is also aligned with the upper band of Bollinger bands, suggesting that prices are range bound and a break is very likely in the near term. One positive sign for bears is the fact that there is a divergence forming on the hourly RSI, which if takes shape might push prices lower. The MACD has also started showing signs of changing slope.
Intraday Support Level – 0.0123BTC
Intraday Resistance Level – 0.0125BTC
Overall, we need to see whether the head and shoulders pattern is valid or not, which might ignite losses if Dash clears 0.0119BTC. On the upside, a break above 0.0125BTC could take it towards 0.0131BTC which represents the previous swing high.
Charts courtesy of Trading View