With a rally in bitcoin pushing up the wider cryptocurrency asset class, dash is back above $300.
At press time, the dash-US dollar (DASH/USD) exchange rate is down over the last week (as expected) falling to $285 on October 3; its lowest level since September 17. The cryptocurrency is now trading at $306; down 1.6 percent in the last 24 hours as per CoinMarketCap.
Yet, the sell-off seen over the last week serves to highlight a peculiarity of the cryptocurrency – that is proving somewhat disconnected with the broader market. For example, while bitcoin remained strongly bid over the weekend, dash suffered losses.
One possible explanation for the behavior, however, is that the market is becoming more conscious that dash is seeking to compete with bitcoin as a payment network focused on consumer transactions.
As the bitcoin blockchain has hung tightly to limitations on network storage (see: the scaling debate), other blockchains, dash included, are seeking to compete. At press time, the average dash transaction fee was $0.02, or about $1.50 at current prices.
Larger debates about blockchain mechanics aside, dash could remain well bid above $300, and any signs that this value proposition is strengthening could potentially lead it to act as a viable bitcoin hedge.
However, the price action analysis suggests, the uptick in dash could run out of steam around $320 levels.
- A bullish break of the falling channel would open doors for a rally to $324 (4-hour 200-MA) and $330 levels.
The chart above shows:
- 5-day moving average and 10-day moving average is sloping downwards. Thus, upticks above $320 could be short-lived.
- The 50-day moving average is still sloping upwards and currently, stands at $323 levels.
- In the short-run, a move to $320-330 looks likely. Caution is advised above $320 levels as the 10-day moving average is still sloping downwards.
- Only two consecutive days-end close above the 50-day moving average would open doors for a rally to $373 levels (Sep 27 high).
Billiards image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at [email protected].
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.