Dash's Bullish Reversal Was Worth Waiting For
EWM Interactive | Nov 15, 2017 05:29AM ET
On October 5th, Dash was the sixth largest cryptocurrency with a market cap of roughly $2.3 billion. Over a month later, it is still sixth, but in such a short time has managed to add another billion dollars to its capitalization, which currently stands at $3.3 billion, after DSH/USD rose to nearly $500 per coin on Monday. Fortunately, this sudden sharp surge did not come out of nowhere. While Dash was trading slightly below the $300 mark, the Elliott Wave Principle applied to the chart below, provided a priceless insight into the virtual currency’s upside potential, which we discussed in impulse in wave (1/A). In other words, unless $219 gave up, the odds remained in the bulls’ favor. Forty days later, the 2-hour chart of Dash against the U.S. dollar looks like this:
As you can see, it took a while. The price did not go straight up as we hoped. It continued to decline in a slow and choppy manner until it formed a w-x-y-x-z double zig-zag correction in wave B and reached a bottom at $247.60 on November 2nd. Nevertheless, it was far away from $219 the whole time, so the positive outlook was still alive. It then took the price only 11 days to skyrocket from $247.60 to $494.50.
Dash’s recent developments give us a good example of the fact that even with the Elliott Wave principle on our side, some things will always remain unknown. That is what invalidation levels are for. Add patience to the equation and the results could be quite good.
But what to expect from now on? Since wave A is a textbook five-wave impulse, we should expect wave C to also evolve into an impulsive pattern. Right now, it does not look like one, because its fifth wave is still missing. This means the $500 mark is still there for the taking. After that, however, the bears should be expected to return for a pullback of at least three waves down to the support near $400. Maybe lower.
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