- Dash after trading as high as 0.0130BTC failed to maintain momentum and fell back sharply.
- It formed a short-term reversal pattern, which is likely to ignite more losses moving ahead.
Downsides in Dash are likely if sellers manage to clear the 100 hourly simple moving average, as there are a lot of bearish signs emerging.
100 MA as Support
Dash traded lower recently after forming a toppish pattern on the hourly chart around 0.0130BTC, but sellers are facing a major resistance in the form of 100 hourly MA. Moreover, the 50% Fib retracement level of the last wave from the 0.0112BTC low to 0.0130BTC high is just above the mentioned MA. So, there is a monster support forming around 0.0121BTC where buyers might fight to prevent more downsides in the near term.
Furthermore, the 61.8% Fib retracement level is also just below the 100 MA, suggesting that sellers need a reason to take prices lower else Dash might continue to find bids.
At the same time, there are many bearish signs emerging on the hourly chart. First, the hourly RSI is below the 50 level, which is pointing towards the fact that buyers are struggling to keep prices higher. Second, the MACD too is the negative slope, and there is a minor divergence forming. Overall, there are more reasons for Dash to move lower, compared gaining strength.
Intraday Support Level – 0.0120BTC
Intraday Resistance Level – 0.0125BTC
If Dash moves higher, then initial resistance can be seen around 0.0125BTC, i.e. around the upper band of Bollinger bands. A break above the same might signal a green light for more gains may be towards 0.0130BTC.
In short, sideways trading is possible moving ahead, and it’s all about gaining momentum. We need to see whether buyers succeed or sellers manage to take prices lower.
Charts courtesy of Trading View