Journalist
Posted:
- Dash has stabilized April’s downtrend by forming a range since July.
- DASH was unable to turn the midrange level around to sustain and hold it.
For the past two months, Dash [DASH] acted within a range. According to the company, it had a 24-hour trading volume of $36 million CoinMarketCapand the price development did not indicate that a trend shift would occur soon.
Market-wide sentiment was bearish after Bitcoin [BTC] fell below $60,000. This short-term bearish momentum could drive DASH lower in the coming days.
The lows beckon
Source: DASH/USDT on TradingView
Since the first week of August, DASH has been trading within a range (yellow) stretching from $21.85 to $28.64. On September 3, the mid-level of $25.26 was tested as resistance and the bulls were rejected.
The CMF stood at -0.02 and showed no significant capital flow in either direction. On the other hand, the MACD on the daily chart showed that momentum was bearish. This suggested that the lows in the range could be revisited.
The lower timeframe market structure also supports this idea, after the rejection from the $25 resistance zone.
Over the past two months, each return to the range lows has temporarily fallen below $20. Traders might want to be prepared for that kind of volatility in the event of another price drop.
Hopes for a price recovery were dashed
Read Dash’s [DASH] Price forecast 2024-25
In the last week of August, the upward trend of Open Interest started to reverse. The price also reversed its short-term uptrend at the $27 level and quickly fell to $22.
This was a sign that speculators were not confident of continued gains. Combined with the drop in the CMF indicator, the market was not ready to bid and DASH is likely to post further losses in the coming days.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer