From may 6th this year dash is forming a nice falling wedge (bullish wedge) these wedges are really good chart patterns especially after a great downward movement. But how we can tell that this downward move is a corection not the resume of the underlying downtrend eversince 0.12Btc (ATH)?
simply we can't say for sure but there are signs of reversal. First of all when doing these kind of analysis we should take a look at some fundamental features of the asset that we are willing to buy. We dont want to waste our money, right?! (as lot of people are doing right now).
The most important thing about dash is that this coin is one of the most used coins as day to day payments that even bitcoin is incapable of doing so without lighting network. Dash is among top ten ATM supported coins (just google it) and it is because of its speed and its very low fee among other coins. So back to the topic we now know that we are not talking about a hype. we are talking about something that has usecases right now and will be used for years because of its utility abilities regardless of price action.
About technicals:
As you may know I'm a quantitative analyst and I make indicators and trading systems with my colleague. I dont like to complicate things as other novice traders do and I dont like to use a lot of indicators. Most of the time you should see the bigger picture of market and should see the emerging opportunities and big reversals. You can not be precise about price and time.
We can say it is more probable that this downward movement is a correction to the upward movement that started from the begining of 2021 in DASHBTC pair because the downward move consumed more time and less price and it formed a falling wedge and now it is time to break this formation. A false break to downside is probable but odds of a soon reversal is pretty nice I suppose.
I putted a fibonacci on time axis and as you can see we are reaching 1.618 (an important ratio) of the time it took for dash to move up from 0.002326 in jan to 0.0083 in may. I'm not telling that we are reversing in immediate future but I found these ratios useful in manual trading. So to recap what I said it is wise to keep an eye on this chart and see the oppurtunity; You can buy in a possible false breakout or to wait for actual breakout to upside. I either case do not forget to use stoploss and mange your risk.
simply we can't say for sure but there are signs of reversal. First of all when doing these kind of analysis we should take a look at some fundamental features of the asset that we are willing to buy. We dont want to waste our money, right?! (as lot of people are doing right now).
The most important thing about dash is that this coin is one of the most used coins as day to day payments that even bitcoin is incapable of doing so without lighting network. Dash is among top ten ATM supported coins (just google it) and it is because of its speed and its very low fee among other coins. So back to the topic we now know that we are not talking about a hype. we are talking about something that has usecases right now and will be used for years because of its utility abilities regardless of price action.
About technicals:
As you may know I'm a quantitative analyst and I make indicators and trading systems with my colleague. I dont like to complicate things as other novice traders do and I dont like to use a lot of indicators. Most of the time you should see the bigger picture of market and should see the emerging opportunities and big reversals. You can not be precise about price and time.
We can say it is more probable that this downward movement is a correction to the upward movement that started from the begining of 2021 in DASHBTC pair because the downward move consumed more time and less price and it formed a falling wedge and now it is time to break this formation. A false break to downside is probable but odds of a soon reversal is pretty nice I suppose.
I putted a fibonacci on time axis and as you can see we are reaching 1.618 (an important ratio) of the time it took for dash to move up from 0.002326 in jan to 0.0083 in may. I'm not telling that we are reversing in immediate future but I found these ratios useful in manual trading. So to recap what I said it is wise to keep an eye on this chart and see the oppurtunity; You can buy in a possible false breakout or to wait for actual breakout to upside. I either case do not forget to use stoploss and mange your risk.
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