Dash (DASH) – Overshot the upper bar of the descending wedge opening the gates for further improvementsPosted on Sunday, September 4 2022 at 8:23 pm GMT+0000
Dash (DASH) bounced sharply from the vicinity of the August 26th intraday low and decisively overshot the upper bar of the descending wedge painted on the four-hour chart.
Technically, there is room for further improvement in the short-term as the Awesome Oscillator is climbing in the positive region and the RSI is hovering some distance above the 50-neutral mark. Additionally, the 20- and 50-period simple moving averages are set to mark a bullish intersection, also boosting optimism for further bullish developments in the forthcoming sessions.
Yet for the bulls to gain full confidence in the recent rally, a sustainable move beyond the most recent intraday top at 48.18 is required. Such a move will see an initial extension towards the 161.8% Fibonacci extension level of the last leg-lower at 51.27 and the neighboring August 24th intraday top. Above that, the price will speed up towards the 261.8% Fibonacci level at 56.27, while further higher the 57.64 – 58.48 area linking the August 9th and 14th highs, will step under the spotlight. The area also encapsulates the technical target of the wedge formation.
In the event the price halts its bull run around 48.18 and reverses lower instead, the simple moving average may act as an initial safety net, those lines are residing near the August 28th inside high of 45.97. a bit lower, it would be interesting to see whether the broken upper bar of the wedge can change its role to defend the latest ascend. If not, a retest of the September 1st low will be in play.
All in all, Dash is currently exhibiting a bullish appetite for the coming sessions. Another successful move above 48.18 is expected to release fresh buying. Otherwise, a negative reversal below 45.97 could inject some caution back into the market.