Dash has rallied just over 10% in the past 24 hours, from $40.20 to $44.44. This comes at a time of subdued Bitcoin momentum.
The crypto leader was only up 0.14% during the same period, and the expected rally to the $95k resistance did not materialize.
There was reason to believe that the price compression between $85k-$90k over the past month could see a bullish resolution. The privacy sector was also performing well recently, with ZCash [ZEC] back above $500.
The privacy narrative could be spurring Dash[DASH] prices higher. What is the next price target for the current move?
Structural shift shows Dash can reach $50
The 1-day chart saw a bullish structure shift for Dash. This happened after the lower high from $41.27 was breached on Saturday, the 27th of December.
The downtrend has been in play since mid-November, when DASH failed to defend the 78.6% Fibonacci retracement level at $63.
This downtrend was beginning to turn around. The next supply zone was at $52.5, highlighted in red.
The OBV has not made a new high, but the RSI was on the verge of climbing back above neutral 50. It agreed with the findings from the price action.
There was buying pressure behind the DASH structure shift, but a trend reversal is not confirmed.
A trader on X pointed out that Dash was making its fifth wave higher, using Elliot Wave analysis. The current target was $50.4.
Assessing the odds of a bullish breakout
The Visible Range Volume Profile tool showed that the $48 level was a high-volume node for December’s price action.
Alongside the psychological $50 resistance level and the $52 supply zone on the 1-day timeframe, a bullish breakout could be difficult and might need more time.
A move past $52 by the first week of January seemed unlikely at the time of writing.
Traders’ call to action — Don’t forget to book profits
The Dash 1-month look-back period showed a concentration of liquidation levels around $53. This agreed well with the earlier findings that showcased this region’s strength as a bearish bastion.
Therefore, while DASH is likely to gravitate toward the $53 liquidity pocket, a breakout might not occur immediately.
With Bitcoin [BTC] also lacking demand, traders should remain defensive and look to book profits on long positions.
Final Thoughts
- Dash saw a bullish structure shift on the 1-day timeframe, an early sign of a trend reversal.
- Such a reversal would need time and sustained demand — for now, traders can look to book profits on their long positions and wait.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
