Dash Price Analysis: DASH Freefalls But On-Chain Metrics Hint at Colossal Recovery
- Dash price drops in tandem with major crypto assets from a yearly high of $415.
- The 38.2% support holds steady as buyers stream in anticipating a significant recovery.
- Dash's transaction history reveals immense resistance, likely to hinder growth.
Dash price action yielded massively from the dip started in February. In March, consolidation dominated the market, but $180 revived the uptrend. In April, the first couple of weeks saw Dash massively swing to higher levels, whereby the price brushed shoulders with $415.
Nonetheless, the volatility in the market since the previous weekend has seen Dash tumble to $270. At the time of writing, the payments token teeters at $296 following a rebound from the crucial support at $270.
Dash Readies for Significant Recovery
The slide from $415 was challenging to stop due to the immense bearish pressure. Widespread losses across the cryptocurrency market caused panic as investors rushed to cash out for profit. After losing several support areas, the 38.2% Fibonacci level came to the bulls' rescue at $270.
Embracing this support allows investors to reenter the market at a lower price level. Meanwhile, Dash has recovered to trade at $296. The immediate upside has been capped by the 50% Fibonacci level, as illustrated on the chart.
DASH/USD Four-Hour Chart
The Relative Strength Index (RSI) on the four-hour chart is almost crossing above the midline, hinting at the uptrend remaining intact in the near term. If the indicator closes the gap toward the overbought region, Dash will secure the uptrend eyeing $415. Note that closing the day above $300 and by extension, the 50% Fibo could bring back market stability, encouraging bulls to increase their positions.
Dash Bearish Outlook
The four-hour SuperTrend indicator has recently flipped bearish, advising traders to short Dash. This is the first time in nearly three weeks that the indicator flashed a sell signal. If the technical picture remains the same, Dash will likely drop further or settle for consolidation.
DASH/USD Four-Hour Chart
IntoTheBlock's IOMAP model highlights the intense resistance ahead of Dash. The transaction model groups past transactions in ranges representing either resistance or support. The model shows that recovery would be challenging, especially with seller congestion between $330 and $340. Here, around 5,400 previously scooped up approximately 242,400 DASH.
Dash IOMAP Model
On the flip side, relatively more substantial support zones prevent Dash's price from dropping appreciably. The most robust buyer concentration zone runs from $260 to $270. Here, nearly 20,400 addresses previously bundled up around 164,000 DASH. If this support area holds, Dash is unlikely to drop to $250 and $200, respectively.