Dash was previously consolidating inside a descending triangle with its lower highs and support around the 153.00 mark. Price has since tumbled below the floor and hit a low of 149.42 before making a retest of the broken support.
Applying the Fibonacci retracement tool on the breakdown shows that the 50% level is right in line with the broken support, which might now hold as resistance. If so, Dash could resume its slide to the swing low or carry on with a drop that’s the same height as the triangle pattern. Scrolling further back or looking at longer-term time frames reveals that the triangle formation is much larger.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. A higher correction could last until the 61.8% Fib at the triangle top or the dynamic resistance at the moving averages.
Stochastic is pulling up after recently hitting oversold levels, hinting that buyers are taking over while sellers take a break. RSI is also on the move up but is halfway through is climb to the overbought zone, so buyers might feel exhausted and allow sellers to take over soon.
Digital assets are in the red mostly due to the outage of Canadian exchange MapleChange which revealed that more than 900 bitcoins it had been holding were stolen. Although it assured that investigations are ongoing, investors couldn’t help but worry after the company took down all its social media accounts and put the site offline.
With that, concerns over hacks and other security issues resurfaced, taking the industry a step back from its progress in terms of gaining more regulatory approval and seeing stronger institutional inflows.