DASH crypto retreats 31%, tests critical $55 zone: Can bulls stop a slide to $45?

Dash [$DASH] has been on a remarkable rally in recent weeks. The privacy coin has benefited from the strongly bullish sentiment generated by one of the leading privacy tokens, Zcash [ZEC].

From a low of $29.62 on the 19th of August to a high of $78.68 by the 6th of September, $DASH rallied 165% in under three weeks. Since then, the token has entered a corrective phase.

AMBCrypto reported that the privacy coin hit a key supply zone at $80, making it one of the notable losers based on the previous week’s price action. At the time of writing, Dash was testing the $55 support zone.

Where will the $DASH crypto retracement end?

The mid-August rally originated at the long-term support around the $30 mark. The $38.38 local high from June was flipped to support. At the time of writing, the next local high at $52.13 from May was being retested as support.

Despite the retracement from $78, bulls can take heart from the fact that key multi-month resistance levels have been breached and are being flipped to support.

The OBV has steadily advanced in recent weeks to signal increased buying volume. The RSI was also showing that bullish momentum was prevalent on the daily timeframe despite the correction.