Dash enables quick and affordable payments

Dash is an open-source protocol that allows anyone, anywhere, to make instant, low-cost payments without relying on a central authority. With its low fees and fast transaction times, Dash has become a popular choice for payments, while its limited supply has drawn investors who view it as a store of value.

Analysts believe Dash has a promising future, primarily because it addresses two of Bitcoin’s significant shortcomings: transaction speed and privacy concerns. Dash transactions are secure and visible to the entire network in under 1.5 seconds, and the cryptocurrency cannot be traced or have its transaction history accessed.

Used globally as a practical alternative to credit cards, Dash is accepted by businesses of all sizes. Dash doesn’t face challenges with exchange rates, bank holidays, bureaucracy, or hidden fees, making it especially popular in areas with limited access to traditional payment systems.

Dash completed its halving last month at block height 1,892,161, with the current block reward set at 2.3097 DASH. Dash’s block rewards are halved approximately every 840,000 blocks (or every four years), which impacts the cryptocurrency’s supply and demand dynamics.

Despite the halving, bear market persists

Although Dash completed its halving, the cryptocurrency continues to experience a bear market, and the potential for further decline remains. Fundamentally, Dash’s success hinges on its adaptability to competitor movements. Dash faces stiff competition, and regulatory changes in the cryptocurrency space also pose risks.

Currently priced at $33.4, Dash is down more than 50% from its 2023 highs. A break below $30 could signal a potential test of the $25 price level. DASH remains highly volatile and is considered a risky investment. Broader market dynamics also play a significant role in influencing DASH’s price.

The U.S. Securities and Exchange Commission’s (SEC) scrutiny, along with recession concerns and aggressive monetary policies from central banks, will likely continue to impact the cryptocurrency market in the coming weeks.

The Fed’s crucial influence

Recent data shows that the U.S. economy added fewer-than-expected jobs in June, but strong wage growth suggests a tight labor market. Some analysts predict that the Federal Reserve may resume interest rate hikes later this month. The federal funds rate currently stands between 5% and 5.25%, the highest since 2006, with the key question being how long the Fed will maintain this restrictive stance to combat inflation.

Analysts are warning that the Fed may keep interest rates high for an extended period, potentially leading to a recession that could impact financial markets. The next Federal Reserve meeting is scheduled for July 26, and markets are pricing in an 86% chance of a 25 basis point rate increase. Antoni Trenchev, co-founder of crypto lender Nexo, noted:

“If the Fed signals it’s not finished raising rates, it could be detrimental for crypto and other risk assets. On the other hand, if the Fed suggests it’s done with rate hikes, this could boost market sentiment and revive the bull run.”

DASH technical analysis

DASH has dropped from $77.83 to $25 since February 16, 2023, and currently sits at $33.46. DASH may struggle to maintain levels above $30 in the near term, and a break below this threshold could suggest another test of $25. On the chart below, I have marked the trendline, and as long as DASH remains below this trendline, no trend reversal is anticipated, and the price stays within the SELL-ZONE.

Key support and resistance levels for DASH

The early part of 2023 showed positive movement for DASH, but since February 16, the price has remained under pressure, with the risk of further decline still present. In the chart (from November 2022), I have marked crucial support and resistance levels that traders can use to anticipate price movement.

If DASH breaks above the resistance at $40, the next target could be $45, or even the important resistance level at $50. The current support level is at $30, and a break below this would signal a “SELL,” opening the door to $28. If DASH drops below the critical $25 support level, the next target may be $20.

What suggests a price increase for DASH

While DASH remains in a bear market according to technical analysis, a break above the $40 resistance could lead to price targets of $45 or even $50. Fundamentally, DASH’s success will depend on how flexibly it responds to competitors’ actions, and the cryptocurrency’s regulatory environment will also play a key role.

The Federal Reserve is widely expected to raise interest rates by 25 basis points in its July 26 meeting, and market participants will closely monitor comments from Fed Chair Jerome Powell for clues on how long the rate hikes will continue. Any indication that the Fed is easing its hawkish stance would be seen as a positive sign for cryptocurrencies, and DASH could see upward momentum if the Fed signals an end to rate hikes.

Indicators of further decline for DASH

A significant reduction in whale transactions for DASH over the past four months suggests that larger investors are losing confidence in DASH’s short-term price prospects.

If whales continue to move their investments elsewhere, DASH’s price could experience further declines in the coming weeks. Although DASH remains above the $30 support, a break below this level could lead to testing the critical $25 support level.

What are analysts and experts saying?

Despite Dash completing its halving last month, the cryptocurrency remains in a bear market, and the risk of further price decline persists. Due to its high volatility, DASH is considered a risky investment, and investors should proceed with caution.

In addition, the broader macroeconomic environment remains uncertain, with central banks around the world continuing to raise interest rates in an effort to combat inflation. Such conditions could result in further difficulties for risk assets like cryptocurrencies.

The U.S. central bank is expected to raise rates by 25 basis points, bringing the rate to the 5.25%-5.5% range. Analysts are concerned that an aggressive Federal Reserve may push the economy into a recession, affecting corporate earnings and stock markets. Cryptocurrencies may not be immune to such a downturn, and investors should be prepared for potential further declines.

Ava dikan: Crypto is highly volatile and not suitable for all investors. Never speculate with funds you cannot afford to lose. The information on this site is for educational purposes only and should not be considered as investment or financial advice.