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Dash Prices Bumping Into Fibonacci Support

Dash Prices Bumping Into Fibonacci Support

Dash is the sixth largest cryptocurrency with a market capitalization slightly below $2.3 billion, or $297.60 per coin as of this writing. Dash fell to as low as $219 in the middle of September, then jumped sharply up to $370 just a week later, before declining to the $300 mark again, leaving bulls and bears equally clueless about the virtual currency’s future direction. Fortunately, just like any other asset, the price of dash did not move in a straight line, which allows us to try and recognize an Elliott Wave pattern on its price chart. Take a look.

dash elliott wave analysis

The hourly chart of DSHUSD visualizes the price development discussed above. As you can see, the rally between $219 and $370 could easily be seen as a five-wave impulse pattern in wave (1/A), whose sub-waves are labeled 1-2-3-4-5. According to the theory, a three-wave decline follows every impulsive advance. In this respect, the decline in Dashcoin’s price is not surprising. It appears to be a simple A-B-C zig-zag with a triangle in the position of wave B. If this count is correct, the trend should now resume in the direction of the five-wave sequence. Furthermore, wave (2/B) has already entered the support area between the 50% and 61.8% Fibonacci levels, giving us another reason to expect a bullish reversal soon. As long as the invalidation level at $219 holds, Dash prices could be expected to exceed the top of wave (1/A) at $370 and possibly reach the $400 mark. In the longer term though, the Crypto Bubble threatens them all…

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