Dash (DASH) – Remains inside the regression channel

Dash (DASH) – Remains inside the regression channel

Posted on Wednesday, February 16 2022 at 9:19 pm GMT+0000

Dash (DASH) remains inside the regression channel stretched from November peak, as the 40-day SMA and the 23.6% Fibonacci Retracement level of the last downtrend defused buyers’ attempts to extend the last recovery.

Consequently, the price charted a new lower high on the daily timeframe, keeping the downtrend intact. Moreover, the persistent negative bearing of the 40- and 100-day SMAs is shielding the current negative structure. The momentum indicator is moving south of the zero mark after reacting to its previous resistance and the ROC is hovering below its moving average in the negative territory, both promoting additional declines.

Currently, the Monday’s low at 98.70 may act promptly to deter sellers from resuscitating a negative price mood. However, if the price successfully navigates lower, it will head straight towards the January 24th low of 80.50. If intensified selling overwhelms this base, it will boost the bearish tone driving the price towards the November 2020 low at 65.80.

Otherwise, if buyers regroup aiming to regain control, they will face initial constraints from the recently tested 40-day SMA and the nearby 23.6% Fibonacci retracement at 113.40 and 120.00 respectively. By overstepping these obstacles, they will target the 142.80 – 144.20 resistance belt, linked to the 38.2% Fibonacci retracement and the 100-day SMA. The January 9th high at 158.00 may be visited if the price breaks through the aforementioned zone.

Overall, Dash is facing a negative bias, with the bears aiming for a close below 100.00 to stage another extension lower. Only a break above 120.00 can spark optimism for a larger upside correction.