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DASH / USD Technical Analysis: Beware Of The Bear

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  1. DASH is bullish in the short-term following a strong upside breakout from a falling wedge pattern

  2. Short-term technical indicators are showing bearish MACD price divergence

  3. Medium-term outlook for DASH remains bearish

 

DASH / USD Short-term price analysis

In the short-term DASH is bullish, following a strong upside breakout from a large falling wedge pattern seen across the lower time frame. Price is also trading above all key short-term moving averages.

A degree of caution is still warranted when trading DASH / USD in the short-term, as a bearish price divergence is evident on the four-hour time frame while the Relative Strength Index shows that the pair has reached extreme overbought conditions.


DASH / USD H4 Chart                                                           (Source: TradingView)

Pattern Watch

Traders should watch for a potential test of the falling wedge patterns upper trendline if the DASH / USD pair starts to turn lower over the coming trading sessions.

MACD Indicator

The MACD indicator is showing bearish price divergence across the four-hour time frame.

 

DASH / USD Medium-term price analysis

In the medium-term, DASH is bearish with the recent up move in the cryptocurrency failing to make any real impact on the overall bearish longer-term downtrend already underway in the pair.

The daily time frame clearly shows two distinct trading patterns, a smaller falling wedge pattern and a much larger falling wedge pattern which has already broken to the downside.

A further advance towards the larger falling wedge pattern cannot be discounted at this stage, although some indicators on the daily time are starting to appear overstretched.


DASH / USD Daily Chart                                                             (Source: TradingView)

Pattern Watch

Aside from the falling wedge pattern, a bullish double-bottom pattern may be forming, after sellers’ failed attempt to breach the pair’s December 2018 trading low.

Key Moving Averages

The DASH / USD pair is still trading below its 200-day moving average, so the overall theme of medium and longer-term weakness is still intact.

MACD Indicator

The MACD indicator is bullish on the daily time frame with scope for significant upside.

Stochastic

The Stochastic Indicator on the mentioned time frame has reached extreme oversold conditions and is conflicting with the MACD indicator.

 

Conclusion

DASH is showing signs of being overstretched in the short-term with bearish MACD price divergence building across the lower time frames.

The medium-term outlook remains bearish until the pair starts to trade above its 200-day moving average. It is certainly worth closely observing any technical pullbacks in this pair for signs that a second major price floor may be in place.



Dash Chart

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