Dash provides instant and low-cost payments
Dash was launched in January 2014 by developer Evan Duffield and was one of the early projects to modify Bitcoin’s code to appeal to a larger market. Originally called Darkcoin, Evan Duffield renamed it to Dash in 2015.
Built on a decentralized peer-to-peer network, Dash allows users to send DASH with no waiting time for blockchain confirmation. Low transaction fees are a key feature of Dash, addressing two significant issues with Bitcoin: slow transaction speeds and lack of privacy.
Dash transactions are secure and visible across the network in under 1.5 seconds, with complete privacy—transactions cannot be traced, and the coin’s transaction history is not accessible. Globally, Dash serves as a practical alternative to cash and credit cards, particularly in areas where traditional payment systems face technical barriers. Like many cryptocurrencies, Dash has a limited supply, with a total of 18.9 million DASH ever to be circulated.
Dash is accepted worldwide by businesses of all sizes, especially in regions where traditional payment systems face difficulties. It operates without the issues of bank holidays, exchange rates, bureaucracy, or hidden fees, and it is not controlled by a single entity.
Current status of Dash
The start of 2023 has been favorable for DASH, with its price increasing by over 40%. However, investors are advised to remain cautious as the US central bank will soon announce its next interest rate decision. The Federal Reserve is widely expected to raise rates by 25 basis points, with Chairman Jerome Powell’s remarks about the economy and monetary policy awaited with great interest.
“The cryptocurrency market edged higher in Tuesday midafternoon trading and is on track to close out a vigorous first month of 2023 as traders prepare for the Federal Reserve’s interest-rate decision due on Wednesday. If the Fed were to defy the consensus and implement a larger-than-expected rate hike, it would potentially bode poorly for crypto prices and other riskier asset classes,” said Colorado Wealth Management Fund, a Seeking Alpha contributor.
The primary concern remains how many more rate hikes will occur and how long interest rates will stay at restrictive levels. Many analysts expect the Fed to maintain elevated rates for an extended period, potentially triggering a recession that could negatively impact financial markets. The European Central Bank will make its decision the following day, and traders should be mindful that crypto sell-offs may intensify if Bitcoin falls below the $20,000 level again.
Technical breakdown of DASH
DASH has risen more than 40% since the start of January 2023, increasing from $41.66 to a peak of $62.22. The current DASH price is $59.72, and as long as the price stays above $50, we cannot expect a trend reversal, indicating that DASH remains in the BUY-ZONE.
Key support & resistance points for DASH
On this chart (from March 2022), we’ve marked significant support and resistance levels to help traders understand where the price might go. According to technical analysis, the bulls are still controlling DASH’s price movement, and if the price rises above $65, the next target could be resistance at $70. The crucial support level is $50, and if the price drops below this threshold, it would signal a “SELL” and the price could fall to $45. If it drops below $40, a very strong support level, the next target might be around $35 or lower.
Factors supporting a price increase for DASH
The trading volume of DASH has seen a significant increase in the last three weeks. If the price surpasses $65, the next resistance level may be at $70. Traders continue to buy DASH despite expectations of market volatility, and the technical outlook indicates that DASH still has potential for further growth. Additionally, traders should consider that DASH’s price is correlated with Bitcoin, so if Bitcoin rises above $25,000, DASH could follow suit and increase in value.
Indicators of a potential decline in DASH price
Although DASH has gained over 40% since the beginning of January 2023, traders should be aware that the price could easily retreat to levels seen in December 2022. The US Federal Reserve is expected to raise rates by another 25 basis points, but if the Fed announces a larger-than-anticipated rate hike, it could negatively impact DASH. The critical support level for DASH is at $50, and if the price falls below this mark, the next support level could be $45. As DASH’s price is also tied to Bitcoin’s price, if Bitcoin drops below the $20,000 level again, it could have a negative effect on DASH’s value.
Insights from analysts and experts
Recent sentiment in the cryptocurrency market has shown positive signs following an encouraging inflation report from the United States. This report suggests that the Fed’s actions to combat inflation are having an effect. Positive inflation data and a strong earnings outlook for many companies have boosted investor confidence ahead of the next Federal Reserve policy meeting. According to Morgan Stanley, recent comments from Fed officials indicate that the pace of rate hikes may slow, though they also stressed that the job is not yet finished. DASH could see further gains if the Federal Reserve hints at slowing its rate increases or announces monetary easing.
Izjava o odricanju od odgovornosti: Cryptocurrency investments are highly volatile and may not be suitable for everyone. Never invest money you cannot afford to lose. The information provided here is for educational purposes only and should not be considered as investment or financial advice.
