The DASH price has jumped 150% over the last month. In July, the coin was close to $100, but today the bulls will be wondering if a new ATH is achievable. In the last few weeks, the technicals for DASH have turned from extremely negative to outright positive. However, it’s easy to get carried away after such an impressive performance. And often, when the market gets super bullish, it signals a reversal may be on the cards.
Following Bitcoin scaling $50,000 and Ethereum’s push above $3,000, altcoins have enjoyed a spectacular run of form. Dash (DASH) has been one of the better performers. As a result, the coin has increased to $268, reclaiming its spot as the 50th-largest cryptocurrency. Although, its market cap of $2.75 billion is only marginally higher than Kusama, which ranks 51st, and is nipping DASH’s heels. Furthermore, considering the magnitude of the recent rally, the Dash price must slow down soon. However, the bulls will highlight one technical indicator suggesting the rally may just be getting started.
The daily chart shows the 50-day moving average at $185.73, is above the 100 DMA at $185.35, and crucially higher than the 200-day at $184.14. When the 50 crosses above the 200, this is referred to as a golden cross. Technical analysts consider this a bullish development which indicates, the long-term trend has turned positive. And whilst this is by no means infallible, it does lend weight to the bullish backdrop.
The proximity of the three major moving averages has created a considerable confluent support area approaching $184. I would consider this the major price support. Although, due to the recent ascent, this is now around 30% below the current price. Therefore, the DASH price can correct over $80.00 and still maintain a positive outlook.
Furthermore, the Relative Strength Index reading of 77.58 tells us the price is overbought and may need a period of consolidation before it can build on recent gains. However, whilst a pause in the rally looks likely, cryptocurrencies quite often pay no attention to the RSI in either direction. If the price clears yesterday’s $285.80 high, it may well extend higher. In that event, a parabolic move to the all-time high of $494 is potentially possible. However, it would likely need Bitcoin and Ethereum to make new all-time highs for that to happen. And that is not a forgone conclusion.
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