close icon

Dash Traders Setting Their Sights on $550 a Coin

In less than four months, between December 20th 2017 and April 6th 2018, Dashcoin fell from an all-time high of $1550 to as low as $287, losing over 81% in market value. Fortunately, the month of April has been more generous, allowing the bulls to take a breather and lift Dash prices to $544 by April 24th. But the bears’ growl can be heard again today as DSHUSD hovers around $415. Has the larger selloff resumed or is this just a temporary decline within a larger recovery? The price chart of the thirteenth largest cryptocurrency can help us find out.
dash crypto elliott wave analysis
The hourly chart of Dash coin shows that the rally from $287 to $544 has an impulsive structure. It could easily be labeled 1-2-3-4-5, where wave 4 is a triangle and wave 5 is extended, but wave 3 is still longer than wave 1. According to the Elliott Wave Principle, this pattern means two things. First, since impulses develop in the direction of the larger trend, the pattern keeps the bulls’ hopes alive as long as Dash trades above $287. On the other hand, every impulse is followed by a three-wave correction in the opposite direction before the larger trend continues. That is what we believe the current plunge to $411.70 so far stands for – a w-x-y double zigzag retracement.

The corrective phase of the 5-3 wave cycle has been developing within the parallel lines of a corrective channel, whose lower line should discourage the bears and give the start of wave (3/C) up towards $550 or higher. The RSI indicator gives us another reason to be optimistic about Dash by depicting a bullish divergence between the last two lows of wave “y” of (2/B). If this count is correct, it is too early to give up on Dash. At least in the short-term, the outlook remains positive.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Overbought TRON Can Tumble 30% Against Dollar

TRON became the 7th largest cryptocurrency by market cap following a 135% surge in the last month. It surpassed Litecoin and Stellar on its way up and is now within a striking distance of Tether in the sixth place. TRXUSD’s recent performance can easily convince investors it is time to join the bulls. The problem…

Read More »

Bitcoin Proves Traders Can Prepare without “Knowing”

The price of Bitcoin slightly breached the psychological level of $3500 yesterday and still has not been able to escape its gravity as of this writing. The current selloff brought back the memories of the time when BTCUSD fell to $3122 a month ago. And while in the markets everyone is an expert in retrospect,…

Read More »

Here is Why BTCUSD is Down 40% in Less than a Month

The price of Bitcoin is declining at an unprecedented speed. Less than a month ago, BTCUSD was hovering above $5500. Last week it fell to as low as $3210, prompting Peter Mallouk, chief investment officer at Creative Planning Inc., to call Bitcoin a “dead man walking”. However, the truth is it didn’t take a professional money manager…

Read More »

Bitcoin Was Going “to the Moon”… And Then It Wasn’t

What a difference a year can make. This time last year Bitcoin was thought to be going “to the moon” by a great majority of people. BTCUSD was approaching the $20 000 mark at the time and financial gurus, hedge fund managers, celebrities and small individual investors alike were rushing to join the bulls. Many…

Read More »

Bitcoin Selloff Crushes Bulls’ Faith in $6k Support

The last several months have been unusually quiet for the price of Bitcoin. The largest cryptocurrency first touched the support area near $6000 in February and has been testing it multiple times since. This support looked so strong for so long that traders and investors started believing BTCUSD was getting ready for the next major…

Read More »

Elliott Wave Ahead of Bitcoin ‘s Goldman-Inspired Crash

Bitcoin was trading above $7400 on Wednesday morning, following a recovery from as low as $5880. Crypto investors hoped the rally will continue, but they could not predict that just a few hours later Goldman Sachs will say it is abandoning its plans to establish a cryptocurrency trading desk, citing the ambiguous regulatory environment as…

Read More »

Bitcoin and BitMEX Trading Halt in Elliott Wave Context

Bitcoin shot up by over $400 in as little as 20 minutes today in a move some crypto experts attributed to a short squeeze during BitMEX’s scheduled maintenance. Unfortunately, BitMEX’s trading halt can explain the surge only in hindsight, which means even crypto experts did not expect it. For example, Don Le, CEO of ChainRock…

Read More »

More analyses