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Dash is up just over 10% in the last 24 hours, from $40.20 to $44.44. This comes at a time when Bitcoin momentum is moderate.
The crypto leader rose just 0.14% during the same period, and the expected rally up to the $95,000 resistance failed to materialize.
There was reason to believe that the price squeeze between $85,000 and $90,000 over the past month could result in a bullish resolution. The privacy sector has also performed well recently, with ZCash (ZEC) back above $500.
Privacy talk could drive Dash (DASH) prices higher. What is the next price target for the current move?
Structural Change Shows Dash Can Reach $50
Source: DASH/USDT on TradingView
The 1-day chart saw a bullish structure change for Dash. This happened after the lower high of $41.27 was broken on Saturday, December 27.
The downtrend has been in play since mid-November, when DASH failed to defend the 78.6% Fibonacci retracement level at $63.
This downward trend was beginning to reverse. The next supply zone was at $52.5, highlighted in red.
The OBV did not make a new high, but the RSI was about to move back above the neutral 50. It agreed with the conclusions of the price action.
There was buying pressure behind the DASH structure change, but a trend reversal is not confirmed.
Source: Rami Scalps on X
A trader on X pointed out that Dash was riding its fifth wave, using Elliot Wave analysis. The current target was $50.4.
Assessing the Chances of a Bullish Breakout
Source: DASH/USDT on TradingView
The Visible Range Volume Profile tool showed that the $48 level was a high volume node for December price action.
Along with the psychological resistance level of $50 and the $52 supply zone on a 1-day time frame, a bullish breakout could be difficult and would require more time.
At the time of writing, a break above $52 by the first week of January seemed unlikely.
Traders’ Call to Action — Don’t Forget to Book Your Profits
Source: CoinGlass
Dash’s one-month lookback period showed concentration of liquidation levels around $53. This aligns well with previous findings that highlighted the strength of this region as a bearish bastion.
Therefore, even though DASH is likely gravitating toward the $53 liquidity pocket, a breakout might not happen immediately.
With Bitcoin (BTC) also lacking demand, traders should remain on the defensive and look to take profits on long positions.
Final Thoughts
- Dash has seen a bullish pattern change over a one-day time frame, an early sign of a trend reversal.
- Such a reversal would require time and sustained demand – for now, traders can look to take profits on their long positions and wait.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
