Dash has formed a double bottom reversal pattern and has just broken past the neckline to confirm that an uptrend is happening. The chart pattern spans 140.00 to around 160.00 so the resulting climb could be of at least the same height.
Price already hit a ceiling around the 200.00 major psychological level so it’s understandable that the climb paused. This could pave the way for a pullback to the broken resistance at 160.00 where more buyers are waiting.
The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume from here. The gap is still sufficiently wide so there appears to be no imminent threat of a crossover just yet.
RSI is turning lower after recently hitting overbought levels, indicating that selling pressure could pick up from here. Stochastic has just hit the overbought region as well and might be turning lower soon. If so, sellers could regain the upper hand and push Dash back down.
Take note that the former resistance at the 160.00 neckline could now hold as support and the 100 SMA might be the line in the sand for a pullback. A break below this could drag price down to the bottoms at 140.00 or even lower.
Dash got a strong boost from news that it has partnered with Kripto Mobile Corporation (KRIP), enabling access to clients in South America. Note that a number of countries in this region are suffering hyperinflation and seeing massive depreciation in their currencies, so there is a large market for folks looking for alternative store of value and means to facilitate transactions.
In particular, Venezuela sees cryptocurrencies as a safe alternative in an economy where the government has enforced strict foreign exchange controls since 2003. According to Bradley Zastrow, Dash Core Group Head of Global Business Development:
“We are seeing an incredible transition period in Latin America with those who are unbanked, underbanked, or simply do not want to use the traditional banking system.”