On the charts $DASH today, a drama is unfolding that is hard to miss. The price has dropped to a minimum of $32.65, and if you look at the hourly timeframe, the picture looks almost like a technical collapse: RSI(6) has fallen to 12.95. This is an extreme zone where the market typically takes a pause to catch its breath.
But the most interesting details lie in the specifics. On the 4-hour chart, three moving averages — EMA 7, EMA 25, and EMA 99 — have intertwined into a tight node around $33.30–33.60. The price is currently trading just below this node, and this is a classic trap: after a sharp decline, the market often returns to the 'break' of connections to check whether these averages have turned into resistance or will remain an attraction.
The daily chart adds context: the long-term EMA 99 is far above at $40.19, indicating that the global trend is still bearish. But locally we see a situation of extreme oversold conditions, which rarely lasts long.
The scenario considers a technical rebound from extreme levels:
· Entry (long): $32.65 – $32.90 (from the current support zone, with the first signs of an RSI reversal).
· Targets: TP1 — $33.30 (return to the average node on 4H), TP2 — $33.70 (testing the upper boundary of the node and EMA 25).
· Stop: $32.40 (the level below the formed minimum; its breakout will lead the price to the next support at $31.50).
When the RSI drops below 13, the market resembles an athlete after a knockout — it can jump back up sharply, but the question is whether there is enough strength for a full fight. Right now we are observing just such a moment: oversold levels are off the charts, but the bearish context on higher time frames hasn’t gone anywhere.
What do you think, will extreme oversold conditions pull the price back into the average node, or will we see a continuation of the decline after a short pause?