During the last couple of months, Dash [DASH] has been trading in a specific range. The 24-hour trading volume stood at $36 million, as reported by CoinMarketCap, with no clear indication of an imminent trend reversal.
Following Bitcoin’s [BTC] drop below $60k, the overall market sentiment has turned bearish. This bearish momentum in the short term might lead to a downward trend for DASH in the upcoming days.
Approaching the Bottom of the Trading Range
Since early August, DASH has been moving within a range (highlighted in yellow) spanning from $21.85 to $28.64. On the 3rd of September, the resistance at the mid-range level of $25.26 was tested, but the bulls faced rejection.
The CMF indicator was at -0.02, displaying minimal capital flow in any specific direction. Meanwhile, the MACD on the daily chart indicated bearish momentum, hinting at a potential revisit to the range lows.
The market structure on lower timeframes also supports the notion of a downward movement following the rejection from the $25 resistance level.
Historically, in the past couple of months, each retracement to the range lows has momentarily breached the $20 mark. Traders should be prepared for such volatility in case of another price drop.
Optimism for a Price Recovery Fades Away
In the last week of August, there was a reversal in the upward trend of Open Interest. Additionally, the price reversed its short-term uptrend around the $27 mark, quickly dropping to $22.
This reversal signified a lack of confidence among speculators in sustaining gains. Coupled with the decline in the CMF indicator, it appears that the market sentiment was not supportive, suggesting further losses for DASH in the days ahead.
Disclaimer: The provided information is not intended as financial, investment, trading, or any other form of advice and represents only the personal opinion of the writer.