Dash has experienced a surge of over 10% in the last 24 hours, rising from $40.20 to $44.44. This increase comes at a time when Bitcoin’s momentum is relatively subdued.
While the leading cryptocurrency only saw a 0.14% increase during the same period and failed to reach the expected resistance level of $95k, Dash’s price movement has been more promising.
There were indications that the price consolidation between $85k-$90k in the past month could result in a bullish breakout. Additionally, the privacy sector, as evidenced by ZCash [ZEC] rising above $500, has been performing well.
The privacy narrative could be a driving factor behind the upward momentum in Dash[DASH] prices. What might be the next target price for this current uptrend?
Analysis shows Dash could reach $50
Source: DASH/USDT on TradingView
On the 1-day chart, Dash displayed a bullish structure shift. This shift occurred after surpassing the lower high of $41.27 on December 27th.
The downtrend that began in mid-November, when DASH failed to hold the 78.6% Fibonacci retracement level at $63, seems to be reversing. The next significant supply zone is at $52.5, highlighted in red.
While the OBV has not reached a new high, the RSI is on the verge of crossing back above the neutral 50 level, aligning with the price action’s positive movements.
Although there is buying pressure behind the structural shift in DASH, a definitive trend reversal has not been confirmed.
Evaluating the potential for a bullish breakout
Source: DASH/USDT on TradingView
The Visible Range Volume Profile tool indicates that the $48 level was a high-volume node in December’s price action.
Considering the psychological resistance at $50 and the $52 supply zone on the 1-day timeframe, a bullish breakout may face challenges and require more time to materialize.
It is unlikely that DASH will surpass $52 by the first week of January, based on the current analysis.
Traders’ advice – Take profits into account
Source: CoinGlass
Examining the Dash liquidation levels over a one-month period reveals a concentration around $53, indicating a strong bearish presence in that region.
While DASH may gravitate towards the $53 liquidity pocket, an immediate breakout is not anticipated. Traders are advised to remain cautious and consider booking profits on long positions, especially with Bitcoin showing a lack of demand.
Summary
- Dash’s 1-day chart displays a bullish structure shift, hinting at a potential trend reversal.
- While a reversal may take time and sustained demand, traders should consider taking profits on long positions and exercising caution.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice.
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