The rise of bitcoin supported the uptrend of the Dash altcoin. DSH/USD has broken through the key resistance level of 105.80. Today, it has reached the upper boundary of the technical range between 150.80and 116.48.
The horizontal line at 116.48 serves as a strong mirror level. In order to break through it, the pair needs to catch the bullish momentum. If DSH/USD settles above this level, it may then move upwards to 134.30.
Does the technical outlook confirm further strengthening of the altcoin?
It is worth mentioning that since January 11, DSH/USD has been holding in the downtrend channel of 149.68 – 133.08 – 144.00. Although this channel is not very precise from the technical point of view, it is still important to pay attention to.
In the period from January 21 to February 2, an inverse Head and Shoulders pattern was formed within this channel on the 4-hour time frame. The neck line was located near the highs at 111.55 – 108.70. This pattern is also not perfect, but it is worth taking a note for now.
Today, the price broke through the neck line and moved upwards after settling above the support level of 105.80. If we consider the reversal pattern, DSH/USD may well grow further, given its upside potential of around 80% of the head’s length. In this case, its next upward target will be the level of 121.42, marked with the purple dashed line according to the highs from November 24, 2020 (on the daily chart).
However, we need to see whether the price will break through the resistance of the 150.80 – 116.48 technical range. If DSH/USD fails to break above this level, it will enter a downward correction with the targets located at the local mirror level of 111.28. In case of a breakout, the target is seen at the level of 105.80.
The material has been provided by InstaForex Company – www.instaforex.com
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