Dash Crypto Bumps Into Fibonacci Support
EWM Interactive | Oct 05, 2017 07:17AM ET
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.
The hourly chart of DSH/USD 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…
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.