DASH-BTC Bullish Breakout Points to More Gains Ahead

DASH-BTC Bullish Breakout Points to More Gains Ahead

Today saw DASH-BTC break above the 0.01600 psychological level and the 24-hour volume in dollar terms has increased over 9%, suggesting more people are entering the market and interested in an upward move. DASH, which has the distinguishing feature of a protocol-level trustless mixing service, PrivateSend, has soared in value against Bitcoin and the US Dollar recently. One of July’s best performers in the cryptocurrency space was DASH-BTC, gaining 42.2% over the month. The price of DASH in dollar terms is now also looking to make further gains as it heads above $10.

DASH is very similar to Bitcoin in that it shares the same codebase, allowing DASH to be supported by the Bitcoin ecosystem. For example, Mycelium recently announced the integration of DASH into their cryptocurrency wallets, which will be available in October. On the other hand, a unique feature of this cryptocurrency is its PrivateSend and InstantSend functions; the former allows full anonymity in transactions while the latter allows the use of the cryptocurrency in a live retail setting with an average 1.3 second confirmation time.

Finally, one important factor that sets DASH out from competitors is the robustness of its network. Collateralized nodes, known as ‘Masternodes’ run the Private and InstantSend functions and secure the network. Block rewards are not entirely given to miners, as with bitcoin, but instead are divided between miners (45 percent), masternodes (45 percent) and the treasury for development of the project (10 percent).

Today, DASH has broke into double digits in US Dollar terms with the market currently above the $10 psychological handle. A break above $10.00 will tempt more people into the market as they try to get in on the ongoing uptrend. Also, the $10.00 will turn into support after previously providing resistance. We have seen a similar thing happening with Ethereum; ETH-USD broke above $10 for the first time back in March and peaked at $15.17. Since then, a strong buying zone has meant that the $10 handle has held as strong support six times since then. Once Dash is trading above $10, we should see similar behaviour from the market and strong buying interest around this psychological level

The chart below illustrates the daily price action for DASH-BTC on the Poloniex exchange and displays the bullish breakout from the Ichimoku cloud. Yesterday, the price action managed to close above the Ichimoku cloud foretelling further appreciation in the week ahead. The market has already touched fractal resistance at 0.0165 and a daily close above this level will give further bullish confirmation. The market will then look to test the recent high at 0.0195, which provides fractal resistance.

Notice that the base line (red) and conversion line (blue) are sharply trending upwards suggesting strong bullish momentum is in play at the moment. Moreover, the Ichimoku cloud is green and is also sharply trending higher signalling we should look for levels to buy DASH-BTC. In addition, the Awesome Oscillator is green and positive confirming bullish momentum and today’s bar is higher than yesterday’s bar which also supports a bullish outlook.


DASH-BTC Bullish Breakout Points to More Gains Ahead - 1


Moreover, this move higher in DASH-BTC is supported by higher volumes on the Poloniex exchange, signalling that this move is justified and DASH will most likely continue higher. Today has seen the highest buying volume for DASH-BTC since March 2016, when this pair managed to establish a high at 0.01809. Compared to yesterday’s trading session, the traded volume has tripled. Such a big increase in volume means that there is a very high likelihood that price action will follow in this direction.

Support is seen at the fractal buy level around 0.01298 illustrated in the chart above. The long-term bullish outlook outlined above will only be invalidated if we see a sustained break below 0.01298872.

However, it looks very likely that DASH-BTC will be able to post fresh highs above 0.02000 given the strength of bullish momentum indicated by the Ichimoku indicator, Awesome Oscillator and volume.

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