- Dash seeks support at $70 to avert potential losses to $65.
- DASH/USD path of least resistance is downwards according to the IOMAP model.
Dash recently embarked on a recovery mission after appearing to have bottomed out at $65. Before the recovery, a lower high pattern from August’s peak of $105 kept recovery at bay. On the downside, the crypto tested support at $65 severally before the remarkable breakout in the first week of October.
Dash bearish narrative eyes $65
At the time of writing, Dash is teetering at $71 while holding firmly to support at $70. On the upside, the 50-day Simple Moving Average limits movement. On the other hand, the Relative Strength Index (RSI) gradual slope towards the midline suggests an intensifying bearish grip. As mentioned, $70 is immediate support. If broken, Dash could spiral to refresh levels at $65 beforehand.
DASH/USD daily chart
The TD Sequential indicator adds credence to the bearish case after flashing a sell signal in the 12-hour timeframe. Besides $70, the 50 SMA is in line to absorb some of the developing selling pressure. The losses might continue, retesting the descending triangle support at $65. Furthermore, the RSI in the same range is pointing south after rejection from the overbought area.
DASH/USD 12-hour chart
IntoTheBlock’s IOMAP model reveals impenetrable zones towards $80. It is doubtful that Dash will continue with the uptrend in the near term. Nonetheless, the most robust resistance lies between $72.6 and $74. Here, just about 46,000 addresses previously purchased approximately 451,000 DASH.
On the flip side, the weakening support shows that the path of least resistance is downwards. However, the strongest of these anchor zones run from $65.6 to $67. Previously, almost 43,000 addresses purchased roughly 252,000 DASH.
Dash IOMAP chart
Another on-chain metric by IntoTheBlock, the “Daily New Addresses” chart, shows impressive growth in the number of new addresses joining the Dash network. For instance, addresses soared from roughly 49,000 on October 8 to approximately 83,000 on October 13. It means that Dash the uptake of Dash is growing despite the retracement from $75. If this continues, higher liquidity and improving network growth will serve as a bullish indicator.
Dash new addresses chart
Looking at the other side of the picture
It is worth mentioning that the TD Sequential indicator sell signal could also be invalidated if DASH/USD holds firmly to the support at $70. On the upside, price action above the 100 SMA in the 12-hour timeframe might open the door for gains towards $75 and $80, respectively. Consolidation beyond $70 will give buyers ample time to gather the strength needed to enact a reversal to higher levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.