Dash (DASH) experienced three days of extreme price volatility. What is the reason for this price volatility and should you buy DASH now?
Fundamental Analysis: A surge in retail interest drives the price of Dash higher
Dash is an open source cryptocurrency focused on providing a fast and affordable global payments network. Dash tries to improve Bitcoin’s original design by adding more privacy and faster transactions. Dash was introduced as a Litecoin fork in January 2014. Since its inception, Dash has developed and integrated various functions such as: B. Master Nodes, InstantSend (an instantly billed payment system), ChainLocks (which makes the Dash blockchain instantly immutable), etc.
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Dash was founded by Evan Duffield and Kyle Hagan. The project was originally called XCoin and changed its name to Darkcoin before being renamed Dash again in March 2015.
Dash’s market position has improved significantly in the past few days as retail interest in the cryptocurrency has increased. Additionally, Dash is entering the DeFi space by partnering with FinanceOin to launch a DASH-powered stablecoin.
DASH was up 116.44% from the week, outperforming both Bitcoin’s 12.54% and Ethereum’s 6.12%. Cosmos is currently the 32nd largest cryptocurrency by market cap and currently has a market value of $ 2.65 billion.
At the time of writing, ATOM is trading for $ 264.50, a price increase of 147.14% from the previous month’s level.
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Technical DASH / USD-Analysis: Three days of massive volatility end in a double-top formation?
Dash has been in an uptrend since early February and its price is slowly moving up. However, the cryptocurrency saw its price rise by $ 300 on February 13. However, with the massive volume slowly waning and the price seemingly creating a double top, it is most likely that a pullback to the $ 200 level will occur.
The current price movement of DASH has been extremely bullish and that outlook won’t change unless the cryptocurrency moves below $ 200. In this case, traders can expect a pullback towards the USD 150 zone.
DASH / USD daily chart
DASH’s daily RSI is currently in the overbought territory and currently stands at 77.78.
DASH / USD 1 hour chart
If we zoom in on the hourly timeframe, we can see that DASH rises to $ 300, then falls to $ 197, and then to $ 291. This price action may have resulted in a double top, which could lead to a drop in prices in the short term.
This statement is also supported by the falling RSI oscillator and a slight decrease in volume over the past few hours.