Dash (DASH) faced a 31% retracement after a 165% rise in less than three weeks. The rally began on August 19 at $29.62 and reached $78.68 by September 6. Since then, the token has entered a corrective phase: at the time of writing, it is testing the support zone at $55. Previously, according to AMBCrypto, Dash reached a key supply zone at $80 and became one of the notable underperformers at the end of last week.
The rise in mid-August started from long-term support around $30. The local high of $38.38 reached in June was turned into support. Now, as support, the next local high of $52.13 from May is being retested. Despite the retracement from $78, bulls have something to lean on: key multi-month resistance levels have been broken and are turning into support. The OBV indicator has been steadily rising in recent weeks, signaling an increase in buying volume. The RSI also showed a prevailing bullish momentum on the daily timeframe, despite the correction. DASH may likely bounce strongly from the demand zone at $52.
The movement from $36.91 to $78.68 was used to construct Fibonacci levels on the 4-hour chart. The $52.13 level coincided well with the 61.8% retracement, but a deeper pullback to $45.85 is also possible. Swing traders should watch for a drop below $52.87 or a breakout above $57.20–$57.80: a drop would signal a deeper retracement to $45.85, while a bullish breakout would indicate the altcoin's readiness to continue its upward trend. Waiting for signs of continuation before entering the market in such conditions may be a safer bet.
Related articles
