Dash has rebounded strongly after hitting a fresh 1-month low of 0.01163BTC yesterday; the price has jumped more than 6% from the previous observation of 0.01175BTC to the current 0.01267BTC. It was earlier discussed that the cryptocurrency was highly oversold and may stage a rebound and now with that accomplished, it will be interesting to see if Dash is able to break the lower-top, lower-bottom structure.
Technical analysis of the 360-minute DRK/BTC price chart implies that there is steam left in Dash, but even that may not be enough to script a trend reversal.
DashCoin Chart Structure – Even though Dash has risen significantly since yesterday, it has not been able to threaten the previous top of 0.01320BTC until now, which is an unsaid pre-requisite for a reversal. Failure to break above previous highs will disappoint the market.
Bollinger Bands – It can also be seen that Dash has taken support from the lower range of the BB and raised its head just a tad above the 20-6h simple moving average of 0.01250BTC. The SMA is a crucial pressure point for the cryptocurrency and hence, sustaining above it can lead to more gains in the value. The upper range of the BB at 0.01330BTC becomes the next target for Dash now.
Relative Strength Index – The RSI indicator has posted a massive jump from yesterday’s reading of 25.76 to 47.83, which almost happens to be the highest level of 2 weeks. An increase in RSI will help the cryptocurrency in achieving higher grounds.
Dash is witnessing what can be aptly called a relief rally. As the cryptocurrency approaches the aforementioned target, market participants can utilize the opportunity to build short positions in the counter. Trend reversal will only get confirmed if Dash is able to climb above the previous peaks and sustain comfortably. Traders must be wary of impulse buying to avoid unnecessary losses.