Dash Technical Analysis: (DASH) Rallying on The Back of Suspect Chinese Support

 In Altcoins, Exchanges

Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.

DASH is finally back on the leaderboard as the best performer among the top 20 cryptocurrencies today, after spending over a month crawling along its base support at $210.

The sudden surge which lifted the asset over 7% this morning comes exclusively from Chinese support on the ZB exchange, a relatively unknown platform that has recently aroused a great deal of suspicion among the crypto community. So far over 51.5% of all trades executed on the ZB exchange today have been DASH against BTC and USDT pairings, and accounting for $200,000,000 of the asset’s $273,000,000 24hr trading volume.

Why so suspicious?

In short, the ZB exchange has been trading substantially high percentages of DASH over the past five days. A vast number of the Reddit community believe that the exchange is simply bots trading DASH backwards and forwards to appear that they have high trading volumes, using slight price variations set by other exchanges.

What does it achieve?

If this is the case, which looking at how thin their order books are it appears so, then it’s likely that the ZB exchange is hoping that these artificially high trading volumes are going to attract new investors onto their platform. More users = more profits from trading fees etc.

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Right now, ZB is ranked #4 on the Coinmarketcap exchange listing by trading volume purely because of today’s rampant DASH trading – so you can see that this tactic is certainly having the desired effect.

Anyway, back to the analysis!

The Story So Far

Looking at DASH/USD over 4hr candles (bottom chart in the video) we can see that the price adheres very well to the Fibonacci retracement levels.

Over the last month, DASH has been traveling sideways, pinned between the 0.618 resistance at $284 and the 0.786 fib support below at $212. The recent efforts from the ZB exchange broke the four-day downtrend that had buried the asset beneath the 0.786 level, but has already begun correcting as short-term DASH holders take the opportunity to exit while there’s temporary demand for the asset.

Over 30min candles we can see a mixed bag of signals, some looking good while others are looking a little precarious.

Bullish Signals

  • Looking at the indicators above, we can see that the 50 EMA is about to make a ‘golden cross’ with the 200 EMA. This is typically a strong reversal indicator.
  • RSI is also rising into the upper half of the channel as momentum increases behind the asset.
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Bearish Signals

  • The Ichimoku indicator (not present in the image above) is showing a bearish T/K crossing.
  • MACD is also plummeting towards the signal line as momentum falls from the earlier high.
  • Chaikin money flow indicator is also showing a weakening in the current price action, as the closing prices fall below the opening trend.

Dash (DASH) Price Targets

All ROI’s for this asset are set from the $225 mark, where the asset is currently holding.

(1) The first price target for DASH during the uptrend will be at the psychological $250 mark (11.11%).

(2) From here we could the asset continue towards the next significant resistance level at $270 (20%).

(3) There is potential that DASH could peak back to the 0.618 fib level at $283 if unknowing investors get suckered into the artificially inflated DASH trading hype. Overall this would deliver a 26.22% gain from the current price point.

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