Digital cash Dash (DASH) – Erased most of the new year gains

Digital cash Dash (DASH) – Erased most of the new year gains

Posted on Tuesday, January 18 2022 at 9:22 pm GMT+0000

Digital cash Dash (DASH) fizzled to break over the ceiling of late December’s resistance and the Ichimoku cloud at 157 and shifted back south erasing most of the new year gains.

The Ichimoku cloud has been falling with the market action over the last month. furthermore, signals from the momentum indicators are currently discouraging since the MACD negatively crossed its signal line below the zero mark, while the RSI is descending in the bearish region. Of note, is the fact that the MACD histogram failed to reach its late 2021 highs as the price did, which reminds of a bearish divergence.

The base scenario is for the price to revisit the 118 -115 key support section, which has been tested twice over the last one-and-a-half month. A step lower will restore confidence in the bearish trajectory, bringing the 161.8% Fibonacci Extension Level, at 89.7 straight under the radar.

Alternatively, if the aforementioned support floor proves strong to claim once again, the price will reverse to re-challenge the Ichimoku cloud seen around 140. A strong hike inside the cloud will take the market towards the 157 hurdle. Any violation at that point will shift the medium-term bias to bullish.

In brief, Dash is maintaining a strong bearish tone below the Ichimoku cloud and directional lines and appears to be headed for a retest of the January low of 115. Breaching through that key support will raise the risk of a sharper decline.