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Dash (DASH) experienced three days of extreme price volatility. What’s the reason behind this price fluctuation, and should you buy some DASH now?
Fundamental analysis: an increase in retail interest pushes Dash’s price up
Dash is an open-source cryptocurrency focused on offering a fast and cheap global payment network. Dash seeks to improve Bitcoin’s initial design by providing stronger privacy as well as faster transactions. Dash was launched in January 2014 as a Litecoin hard fork. Since its inception, Dash has developed and included various features, such as masternodes, InstantSend (an instantly-settled payment system), ChainLocks (that makes the Dash blockchain instantly immutable), etc.
Dash was founded by Evan Duffield and Kyle Hagan, with the project originally being called XCoin, changing its name to Darkcoin before rebranding again to Dash in March 2015.
Dash’s market position has improved greatly in recent days as retail interest for the cryptocurrency grew. On top of that, Dash is entering the DeFi space by working with FinanceOin to launch a DASH-backed stablecoin.
DASH posted week-over-week gains of 116.44%, outperforming both Bitcoin’s 12.54% gain and Ethereum‘s 6.12% gain. Cosmos is currently the 32nd-largest cryptocurrency by market cap, and currently boasts a market value of $2.65 billion.
At the time of writing, ATOM is trading for $264.50, which represents a price increase of 147.14% when compared to the previous month’s value.
DASH/USD technical analysis: three days of massive volatility end in a double top formation creation?
Dash has been in an uptrend since the beginning of February, with its price slowly moving towards the upside. However, the cryptocurrency has experienced a price surge on 13 February as it reached $300. However, with the massive volume slowly fading and the price seemingly creating a double top, a pullback to the $200 levels is most likely to happen.
DASH’s current price movement has been extremely bullish, and that outlook will not change unless the cryptocurrency moves below $200. In that case, traders may expect a pullback towards the zone around $150.
DASH’s RSI on the daily time-frame is currently into the overbought territory, with its current value sitting at 77.78.
Zooming in to the hourly time-frame, we can see DASH’s push to $300, then drop to $197, and then a new push to $291. This price action may have created a double top, which could translate into a price drop in the short term.
This statement is also backed by the descending RSI oscillator as well as a slight volume decrease in recent hours.