Dash Technical Analysis: February 11, 2020
February 11, 2020
The cryptocurrency market is supported, all major cryptocurrencies are advancing this month and according to current market sentiment, this trend is still intact. Dash was one of the best performers in the cryptocurrency market in the last several weeks, the price of this cryptocurrency has advanced from $50 above $150 in less than 30 days. After researching some of the leading Dash price predictions, I found that most professionals predict the bright future for this cryptocurrency but in my opinion, this cryptocurrency still faces lots of problems. Dash is a cryptocurrency that was released in early 2014 under the original name of DarkCoin (DRK). Dash is a privacy-focused cryptocurrency and it is important to mention that Dash solves two of Bitcoin’s biggest problems: speed of transactions and the lack of privacy. The main advantages of this cryptocurrency are low fees, quick confirmation times and a moderate level of anonymity. There is still a level of uncertainty surrounding this project and one of the factors to consider before deciding whether or not to buy this cryptocurrency is the competition that Dash will face from other similar projects. The positive thing is that lots of partners are already supporting this cryptocurrency and Dash is already connected with various payment programs. In the chart below (a period from April 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $150 and $180, $100 and $80 represent the strong support levels.
Dash has a short-term resistance area at $130 and it would take a break above this level to confirm a new leg higher towards the $150 level. If the price drops below $100 support that would be a “SELL” signal and the open way to $80. I would not invest in Dash currently, maybe only as the short-term trader with “stop-loss” and “take profit” orders. In the chart below we can see how did the price of Dash perform in the last 30 days. On this chart, I have marked a “trendline” and if the price drops below this trendline that will be a “SELL” signal.
Recommendation: The price of Dash currently stands around $126 and the first strong “BUY” signal would be if the price jumps again above $150. Dash solves two of Bitcoin’s biggest problems: speed of transactions and the lack of privacy and this cryptocurrency might still be undervalued according to some analysts. It is very hard to explain the actual value of Dash and because of that, I would recommend to everybody to be careful with investing in Dash. Dash has a strong resistance area at $150 and it would take a break above this level to confirm a new leg higher towards the $180 resistance level. If the price jumps above $150 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $140 and take profit at $170 or above. If the price drops below $80 strong support that would be a strong “SELL” signal and the open way to $60.