- Dash technical levels and indicators suggest a liftoff to $80 is in the offing.
- On-chain metrics show that recovery will not be easy as intense seller congestion zones await DASH/USD.
Dash has held onto support at $65 since the beginning of September. However, recovery has not been forthcoming, with the resistance at $80 remaining intact. Buyers attempted to regain control of the trend in mid-October, but they seem to have lost the steam marginally above $75.
Meanwhile, DASH/USD is doddering at $71 while holding onto the 50-day Simple Moving Average (SMA). The Relative Strength Index (RSI) highlights the possibility of a sideways price action taking precedence in the near term.
On the other hand, if the 50-day SMA immediate support holds, confidence will likely increase in the bullish camp. More buy orders would also come into play, creating an optimum volume for gains above $75 and towards $80.
DASH/USD daily chart
It is essential to keep in mind the hurdles that could delay the breakout to $80—starting with the seller congestion at $75, the 200-day SMA and 100 SMA. For now, immediate support is provided at $70, while extended declines would seek refuge at $65.
A buy signal presented by the TD Sequential Indicator on the 12-hour chart adds credence to the bullish scenario. Simultaneously, DASH/USD is resting on the immediate support provided by the 100 SMA. Marginally below this level, the 50 SMA is in line to stop declines likely to sabotage the recovery. On the upside, the next target is the 200 SMA, which could catapult Dash past $80.
DASH/USD 12-hour chart
Looking at the other side of the fence
It is worth mentioning that on-chain metrics are bearish on Dash despite technicals beings relatively positive. Particularly, IntoTheBlock’s IOMAP model pokes holes in the bullish narrative, shining a light on the intense resistance ahead of the crypto.
For instance, the most robust seller congestion lies between $73 and $74. Here, nearly 57,000 addresses previously bought around 520,000 DASH. According to the model, this hurdle and several others may hinder price action to $80.
On the downside, support is small compared to the gigantic resistance—the most significant running from $64 to $67. Here, approximately 46,000 addresses previously purchased roughly 312,000 DASH. In case this support is shattered, DASH/USD could embark on a spiral under $60.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.