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DASH, in its 4-hour chart, shows it’s price developing a bearish sequence after the bearish breakout of an ending diagonal pattern.
The cryptocurrency DASH, started a new bearish movement in late April when the price violated the base-line of the ending diagonal pattern, which belongs to the wave ((c)) of Minute degree identified in black.
According to the textbook, an ending diagonal pattern is a terminal formation composed of five waves overlapping each other and following a 3-3-3-3-3 sequence. This pattern tends to appear on waves 5th and C. In turn, this pattern warns about an imminent change in trend.
On the previous chart, we note that DASH developed a bearish sequence that started from the high of February 13th when the price reached the level of $137.69. This downward movement dragged the price to the $33,976 level, reflecting a strong level of downward momentum.
Once the action finished its massive sell-off on March 13th, DASH completed a wave A of Minor degree labeled in green and started its wave B in green.
The first rebound developed by DASH was completed in a five-wave sequence identified in blue. This first movement met resistance at 84,030 on April 09th.
Within the first structural series of five waves corresponding to wave ((a)) in black, it is observed that DASH performed a third extended wave.
In this context, considering that the first bullish movement was with a high level of bullish momentum, and considering the alternation principle, the next move corresponding to wave ((c)) in black, did not present the same level of bullish acceleration.
Currently, the chart shows the violation of the base-line that connects the end of the waves (ii) and (iv) of the diagonal ending pattern.
This scenario leads us, in the first place, to expect a new bearish movement in five waves corresponding to wave C in green. Secondly, considering the alternation principle, DASH should not develop a decline beyond the level of 33.976.
It may be possible that the downward movement belonging to wave C could be a “failure pattern in C,” which could lead DASH to reach a new bullish move that will take it to exceed $90 level.
In conclusion, in the short-term, we expect a bearish movement, which we anticipate it should not extend beyond the level of $33.976. Once this bearish movement completes, DASH should start a new rally, which could boost the price action up to the $90 level.