The broader cryptocurrency market is experiencing a steady rebound following a period of sharp volatility last week. This recovery has seen Ethereum (ETH) bounce back from a low of $2,622 towards $2,925, contributing to improved sentiment that is now benefiting several altcoins. Among the standout performers today is Dash (DASH).
DASH has surged by 19% in today's trading session. Beyond this significant price increase, the current market structure of DASH is drawing considerable attention, with a key technical pattern forming on its chart that may signal a substantial upward move in the near future.
Falling Wedge Pattern Indicates Potential Bullish Reversal
Analysis on the 4-hour timeframe reveals that DASH is currently trading within a falling wedge pattern. This chart formation is widely recognized in technical analysis as a bullish reversal signal, suggesting a decrease in selling pressure and often preceding a strong upside breakout once the price moves beyond the narrowing boundaries of the pattern.
After experiencing consistent selling pressure for several weeks, DASH found support at the wedge's lower boundary, near $52.61. Buyers stepped in at this level, driving the price back towards $66.01. This recent price action places DASH just below its upper wedge resistance and also beneath the 200-period moving average, which is currently situated around $72.23 and is acting as dynamic resistance.
The combination of this tightening price structure and the renewed buyer interest suggests that DASH may be poised for an imminent breakout attempt.
Outlook for Dash (DASH)
Should DASH successfully break above the falling wedge resistance and reclaim the 200 moving average, it could initiate a powerful continuation rally. According to the measured move projection derived from the wedge pattern, the next significant upside target is approximately $145.00. This level represents a potential upside of over 123% from current trading prices.
Conversely, if the anticipated breakout fails to materialize, DASH might retest the $58 support region. This level now serves as a critical short-term demand zone, and its defense by buyers is essential to sustain the current bullish structure. A decisive break below this level could potentially hinder or weaken the ongoing recovery momentum.
For the time being, market participants are closely watching to see if DASH can accumulate sufficient momentum to break through the wedge resistance and potentially launch a new bullish phase in the coming days.