Dash [DASH] has been on a remarkable rally in recent weeks. The privacy coin has benefited from the strongly bullish sentiment generated by one of the leading privacy tokens, Zcash [ZEC].
From a low of $29.62 on the 19th of August to a high of $78.68 by the 6th of September, DASH rallied 165% in under three weeks. Since then, the token has entered a corrective phase.
AMBCrypto reported that the privacy coin hit a key supply zone at $80, making it one of the notable losers based on the previous week’s price action. At the time of writing, Dash was testing the $55 support zone.
Where will the DASH crypto retracement end?
The mid-August rally originated at the long-term support around the $30 mark. The $38.38 local high from June was flipped to support. At the time of writing, the next local high at $52.13 from May was being retested as support.
Despite the retracement from $78, bulls can take heart from the fact that key multi-month resistance levels have been breached and are being flipped to support.
The OBV has steadily advanced in recent weeks to signal increased buying volume. The RSI was also showing that bullish momentum was prevalent on the daily timeframe despite the correction.
It is likely that DASH crypto can rebound strongly from the $52 demand zone.
Traders’ call to action – Wait
The swing move higher from $36.91 to $78.68 was used to plot a set of Fibonacci retracement levels on the 4-hour chart. $52.13 lined up well with the 61.8% retracement level, but there is also a chance of a deeper price drop to $45.85.
Swing traders can consider watching for a DASH crypto price dip below $52.87 or a breakout past $57.20-$57.80.
A price dip would signal a deeper dip toward $45.85, while a bullish breakout would signal the altcoin was ready for the uptrend to continue.
Waiting for a sign of continuation before buying could be the safer bet in these conditions.
Final Summary
- DASH rallied 165% within three weeks and has corrected by 31% from the local high.
- Despite the correction, its upward trajectory remained intact. Buyers can wait for signs of a bullish continuation before entering the market.
