More than $ 83 billion has been pushed into the cryptocurrency market since Jan. 3. The huge inflow of capital has triggered a rally with most of the industry's cryptocurrencies, but Dash is one of the best performing digital assets.

Blockchain Dash analysis shows growth of the network

In post On the blog, business developer Eduardo Morrison at IntoTheBlock explained various blockchain models based on the company's statistical model that describes the idea of ​​Dash performance in the recent parabolic process. He stated that price fluctuations seem to be directly related to the increasing use of the network.

According to Morrison, the main goal of the Dash Foundation is to make the ‘government’ cryptocurrency a daily means of trading. He argues that the Foundation appears to be moving closer to its goals, especially in emerging or struggling economies, where Dash is viewed as “a reliable and archiving payment method.” value”.

Morrison said:

“Dash develope very strong in Venezuela. That's where it is achieving spectacular growth. TMay to December 2019 have defined a level an increase of 562% in active wallets. ”

As the Dash utility continues to evolve, investors seem to be paying more attention to this cryptocurrency. Based on IntoTheBlocks entry and exit index, approximately 227,260 addresses purchased Dash for an average of $ 73.75 and 128,840 other addresses purchased for about $ 93.59. Due to the recent upward momentum, Morrison has asserted that 47% of Dash holders can recover significantly and are now profitable.

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Dash

Cash flow in and out | Source: IntoTheBlock

About 85% of Dash holders are actually retail investors who own less than 0.1% of the circulating supply. According to Morrison, they are mainly concentrated in the western hemisphere.

Dash

Eastern and Western Hemisphere | Source: IntoTheBlock

Moreover, the Dash community is also expanding as users continue to add nodes to the network, making it harder to exploit over time. IntoTheBlock's hashrate shows that the rate of hardware mining blocks has increased almost quadrupled in a year.

Morrison adds:

“In January 2019, Hashrate for miner Dash is 1.66k terahash per second while recently on January 25, it reached a peak of 5.69k TH / s ”.

Dash

Hashrate | Source: IntoTheBlock

The exponential increase in Dash popularity is also reflected in its price. This cryptocurrency traded as low as $ 40 on January 3 to as high as $ 143 on January 15. After a 256% increase, Dash has reached its exhaustion point. Now, some technical models estimate further corrective action before continuing the uptrend.

Technically, price may decrease

The 3-day moving average (MA) 200 seems to act as a significant resistance on the 3-day chart. If this barrier continues, the coin can retreats to find support around the MA 100 for 3 days. This support is currently at around $ 98.

Increasing selling pressure around the 3-day MA 100 can cause a bigger drop. Such bearish momentum will likely bring the cryptocurrency to a 50-day moving average of about $ 71.

Dash

DASH / USD | Source: TradingView

Reinforcing the prospects of price decrease, parabolic stop and reverse (SAR) gave a sell signal on January 19. Every time the stops and reversals move on the price of an asset, it is considered a negative sign. This bearish action shows that Dash's trend has changed from bullish to bearish, based on a 1-day chart.

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This is the first time since the beginning of December 2019, the SAR system has decreased. In the meantime, Dash has dropped by nearly 29% after the parabolic SAR signaled off.

DASH / USD | Source: TradingView

Moreover, the moving average convergence divergence line (MACD) has recently turned downward in the same time frame as the estimated swing bottom. This technical indicator follows the trend line and calculates its momentum.

When the 12-day EMA intersects the 26-day EMA, the odds for downward continue to rise.

DASH / USD | Source: TradingView

Based on many bearish signals that can be seen on different time frames, it seems that pullback is happening. However, the surge in demand for Dash allowed it to close above the MA 200 for 3 days and could jeopardize the bearish outlook. Such an upward momentum could set the stage for a further step, bringing the coin to a new yearly high.

The future looks bright

According to Morrison, the popularity Dash has is related to some of the “interesting features” added to its protocol over the years.

For example, InstantSend allows users to send Dash transactions at an extremely fast rate. Meanwhile, PrivateSend helps anonymize transactions within the network. In addition, ChainLocks has recently been integrated to eliminate the threat of a 51% mining attack.

These features make Dash a very strong crypto, with a strong focus on near-zero speed, privacy and transaction fees. At the same time, since the network operates as a self-managed and self-funded model, it is guaranteed that 10% of mining rewards will return to the Dash Foundation to fund protocol improvements.

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While this privacy-focused cryptocurrency has a strong infrastructure, it is currently standing above weak support from a technical perspective. If the price can not be sustained, a downward correction is entirely possible.

After the recent rally, downward can help maintain a healthy growth trend by outsiders returning to the market. New capital inflows will support Dash to continue its uptrend, pushing prices to higher levels.

Current Dash Price | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

Bitcoin Magazine | Cryptoslate

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