Can Dash re-establish itself as one of the top cryptos in June as privacy becomes a hot commodity?
Dash is a privacy-focused cryptocurrency that used to be one of the top coins by market capitalization. After starting the year at $ 100, hitting a high of $ 494 on May 7, followed by a pullback to $ 150 just days later, Dash has come a long way in the past 6 months . The coin has rebounded slightly after the May 19 crypto crash.
In this article, we’re going to discuss some key technical and fundamental factors that could affect Dash price action in the future and estimate the direction it could take this month. Is Dash a bargain right now, or should you stay away from it?
Dash price analysis
As noted above, Dash was trading at $ 171 at the time of writing, halfway between the support and resistance levels at $ 146 (FIB 0) and $ 192 (FIB 0.236), respectively, and consolidating well. When studying the DASH / USD price chart, it becomes clear that the coin has been since the 25th. It shows that the supply and demand forces have been almost the same for the duration of this sideways movement.
DASH / USD 4 hour chart. Source: TradingView
DASH started June well, close to $ 200, and it appears that it will push the resistance level at $ 220 (FIB 0.382) and rally towards the $ 250 region from then on. It hit a high of $ 220 on June 3, but was curbed by selling pressure resulting from the tweet from Elon Musk tweeting about a possible split from Bitcoin.
From then on, DASH / USD was in bearish mode. It has gradually lost ground, hitting a low of $ 151 on June 8, just below the $ 146 support level. However, as we write, Dash is showing signs of rebounding and an upside reversal. It’s worth noting that Dash has a strong correlation with Bitcoin as it is a fork of Litecoin, which in turn is derived from Bitcoin. So every external factor that affects Bitcoin also affects Dash, often to the same extent.
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Dash Price Factors for June
Now let’s talk about the possible Dash price directions this month and the reasons why.
Inflation on the horizon?
There are a few external factors that you need to consider that could potentially affect the Dash price for the remainder of June 2021. The US consumer price index (CPI) data will be released on June 10th, and experts believe they will uncover the CPI has risen to around 4.7% with the core CPI hitting the 3% mark has exceeded. A higher level of inflation would likely be positive for coins like Dash, which have limited supply – scarce assets tend to do well in times of growing money supply.
China is taking action against crypto
How the Chinese crypto crackdown plays out for the rest of the month will also determine the future price of Dash. The DASH / USD chart shows a couple of red candles on June 6th and 7th respectively, given further tough measures. All of these bearish developments will inevitably drive the DASH price into a downward trend.
Dash price forecast
Although Dash can move either way from its current price point of $ 171, there is a good chance it will be pushing an uptrend based on the past trend. This is despite the current RSI level, which is in the bearish area below -40. Alternatively, the bears could justify a downward push if you look at the 50 SMA, which has been well above the price candles since the May 19 crash. But unless they bring strong volumes into play, a solid downtrend isn’t all that much in sight.
DASH / USD daily chart. Source: TradingView
On the other hand, the MACD indicator is making a gradual upward curve after crossing the signal line on June 2nd. This bodes well for the Dash bulls anticipating a breakout into the $ 200 plus zone. However, they will also need more trading volume to do this type of push. If they do, we could potentially see a good rally towards the resistance level at USD 243 (FIB 0.5) and a determined effort for the USD 298 at 0.786 FIB.
In the event the bulls fail to fend off the bears, Dash could potentially hike down, bringing in the FIB 0 support level at $ 146. A break of this level will push Dash price into the pre-February area with new lower support. Hence, bears should keep a close eye on the USD 146 level.
If privacy continues to be a hot topic, and if Dash can join the rest of the crypto market for a strong technical rebound in June, then the bulls will be looking at the $ 243 price level as a specific target for late June. Dash under $ 200 might seem like a steal in the coming weeks.
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Please note that this is an opinion article and therefore the information given above should be treated as the author’s personal opinion. None of this should be construed as direct investment advice.