Caution Advised for DASH Buyers Despite Strong Weekend Gains

Summary:
DASH has seen impressive gains of over 10% in the last 24 hours, rising from $40.20 to $44.44. However, while DASH's rally is notable, traders are advised to proceed with caution due to potential market volatility and structural challenges ahead.

Key Takeaways:

DASH experienced a substantial 10% increase over 24 hours.
Bitcoin's momentum remains sluggish, only gaining 0.14% in the same period.
A bullish structure shift has occurred, suggesting DASH could potentially reach $50.
The $48 and $50 levels present significant resistance and require careful monitoring.
Traders are encouraged to secure profits and remain vigilant in the current market climate.

Here's why Dash buyers must be wary despite strong weekend gains

DASH's Price Surge Amidst Bitcoin's Stagnation

Dash 1-day Chart
Source: DASH/USDT on TradingView

In the past day, DASH has surged by over 10%, moving from $40.20 to $44.44. This increase comes amid low momentum in Bitcoin, which only rose by 0.14% during the same timeframe. Initially, there were hopes for Bitcoin's price to rally towards the $95k resistance, but those expectations have not yet been fulfilled. Interestingly, the privacy sector in cryptocurrencies has recently seen positive performance, with ZCash (ZEC) climbing back above $500, possibly impacting DASH's upward trajectory.

Dash's Structure Shift Points to $50 Target

The daily chart for DASH indicates a promising structural shift, having broken through a lower high of $41.27 on December 27. A downtrend had been evident since mid-November when DASH couldn't maintain the crucial 78.6% Fibonacci retracement level at $63. However, indications suggest that this downward trend is beginning to reverse. The next resistance zone sits at $52.5, marked in red on the chart.

While the On-Balance Volume (OBV) has not reached new highs, the Relative Strength Index (RSI) is on the verge of moving above the neutral 50 level, which corroborates the observed price action.

Source: Rami Scalps on X

An analyst on X highlighted that DASH is currently making its fifth upward wave according to Elliott Wave theory, and is aiming for a target of $50.4.

Evaluating the Potential for a Bullish Breakout

Dash 1-hour Chart
Source: DASH/USDT on TradingView

The Visible Range Volume Profile shows that the $48 level had significant trading volume in December. In conjunction with the psychological resistance at $50 and the supply zone at $52 observed on the daily timeframe, a bullish breakout may face challenges and require more time to materialize.

Given the current market conditions, exceeding the $52 mark by early January seems improbable.

Advice for Traders: Lock in Your Profits

Dash Liquidation Heatmap
Source: CoinGlass

The analysis over the last month indicates a concentration of liquidation levels around $53, which aligns with previous discussions regarding this region's bearish strength. Consequently, while DASH is positioned to approach the liquidity area at $53, a breakout may not happen right away.

With Bitcoin demonstrating low demand, traders are advised to stay cautious and consider booking profits on their long positions.

Concluding Thoughts

Disclaimer: The insights offered here do not constitute financial, investment, trading, or any other form of advice, and represent solely the author's perspective.