Dash (DASH) is likely to break above $ 120 in the coming sessions to see the bulls target a new uptrend towards $ 140.
Dash (DASH) has risen in value over the past three days and could post a fourth consecutive green candle to bolster the bulls' argument for more gains. It did so after selling pressures saw bears push prices from a 7-day high of $ 134 to lows of $ 94 last week.
The bulls were able to regain control over the weekend, rebounding, although sellers overloaded by $ 110 stalled gains in early trading that Monday.
DASH / USD
The short-term technical outlook for Dash suggests that the bulls will have the upper hand as long as the price remains above $ 105. The price level offers a solid support zone with a nearby cushion above at the 50-SMA ($ 106). Below is a month-long rising trend line that has prevented sellers from falling DASH / USD below $ 100 during the last four days.
Additional optimism for buyers is supported by the golden transition from the 20 out of 50 SMA on the daily chart. The 20-SMA curve extends higher, widening the gap above the 50-SMA, indicating that the uptrend is strengthening.
Currently, there is overhead resistance provided by a previous horizontal line at $ 113, above which a higher buy could push the DASH price to the 20 SMA ($ 117). Above that price level, the bulls are facing stiff resistance at $ 120, just above the $ 0.618 ($ 119.59) Fibonacci retracement level of the $ 159- $ 94 recession.
If the bulls break above $ 120 and maintain momentum, the next hurdle will be at $ 127 (0.5 Fibonacci level) and $ 134 (0.382 Fibonacci level).
On the hourly chart, DASH / USD appears to have invalidated a potential head and shoulders pattern with a cut to around $ 104.
If prices move up, the bulls could cross the upper trend line of an ascending triangle with a $ 110 barrier. From here, legitimate targets are at $ 113 and $ 120, which is probably the main hurdle to going up to $ 140.
The positive divergence on the RSI suggests that the bulls have the upper hand at the moment.
Conversely, a downtrend could push DASH / USD back to the 20 SMA ($ 106) and the 50 SMA ($ 107) on the hourly chart. Any loss beyond this could push the dash price to the solid support zone around $ 105. Recent lows of $ 94 provide further short-term appeal for shorts.