Dash (DASH) – On the verge of a positive outlook upgradePosted on Wednesday, October 26 2022 at 9:30 pm GMT+0000
After plunging to a fresh four-month low a few days ago, Dash (DASH) rebounded aggressively and sliced through the descending regression channel stretched from the August 9th peak, aiming to confirm a bear trap formation on the daily chart.
The recent bullish tone is also reflected by the Ichimoku lines which are ready to perform a fresh positive intersection. Moreover, the oscillators convey a picture where buying appetite is strengthening, as the momentum indicator is rising in the positive region and the MACD has shot above its trigger line and appears headed towards its equilibrium level. Additionally, the stochastic is exhibiting a strong positive charge, boosting optimism for further upside developments.
Nevertheless, buyers should wait to see if the coin will manage to breach the resistance area linking the October 10th high and the lower surface of the Ichimoku cloud around 43.50. In such a scenario, the aforementioned reversal pattern will be confirmed, and the price will bounce toward the 161.8% Fibonacci extension level of the last down-leg at 46.87. A decisive move above this line will open the gates for the 227.2% Fibonacci extension level at 50.43, overlapping with the September 10th peak.
On the flip side, if the price withdrawals back inside the channel, it will initially weigh on the Ichimoku lines around 40.75. A decisive violation at this point will likely trigger a fast decline to the October 13th bottom of 38.05.
To summarize, despite the latest positive thrust, Dash has yet to confirm a bullish reversal. Only a significant move beyond 43.50 will upgrade the medium-term picture to positive.