Key Highlights
- Dash price failed to break a critical support area at 0.0116BTC and traded back higher.
- There was no way for sellers to take the price lower, and as a result there was an upside reaction.
- A solid bullish bar is formed on the hourly chart, which has the potential to take the price higher.
Dash price was rejected around 0.0116BTC on a number of occasions, which resulted in a spike higher.
Consolidation Phase
We highlighted the importance of 0.0116BTC support area that helped buyers time and again. There was a rejection noted Intraday around the mentioned support area, and one key point to note is that there is a bullish outside bar candle formed on the hourly chart. The price also traded above the 100 hourly simple moving average, which can be seen as a positive sign. Moreover, the 23.6% Fib retracement level of the last drop from 0.0125BTC to 0.0116BTC was also breached by buyers.
Overall, there are many bullish signs that might encourage buyers in the near term. There was an hourly close above the 100 MA and the 23.6% Fib level. Currently, the price is trading around the Upper Bollinger Band, i.e. acting as a resistance. The next level of interest can be seen around the 38.2% Fib retracement level of the last drop where sellers might appear.
We must not forget the all-important 0.0120-22BTC swing area, which acted as a resistance and support many times earlier. On the downside, the 100 hour MA may act as a support moving ahead. Any further declines might take the price once more towards 0.0116BTC, which holds the key in the short term.
Intraday Support Level – 0.0116BTC
Intraday Resistance Level – 0.0120BTC
Both the hourly RSI and MACD are showing positive signs, which means more gains are likely.
Charts courtesy of Trading View
