On Friday, January 17th, the Dash cryptocurrency is trading at $122.40.
On D1, DASH/USD demonstrates a confident impulse of growth. These dynamics are quite logical. The first reason is the decline of the quotations to a very low level of $38.12. The second signal of the growth was a divergence on the MACD. The third signal was a breakaway of the resistance line of the mid-term channel. The long-term technical picture shows that the growth is aimed at reaching and testing the resistance level of the main long-term channel – $175.00; a breakaway of this level will mean a new bullish phase. The support is currently at $55.65.
On H4, there is a potential for a short-term correctional decline after a divergence on the Stochastic and a Black Cross in the overbought area. By now, the quotations have reached 23.6% Fibo in relation to the previous growth and may soon fall to 38.2% ($110.71) and 50.0% ($97.13).
For the Dash token, January has become an especially successful month, or at least so can be said about the moves in the first half of it. The rate has grown by 200%, while the intraday trade volume has sky-rocketed by 1000%, amounting to no less than $2.3 billion.
There might be several reasons for the growth of the Dash. On the one hand, DASH Financial Technologies presented its new product DASH ATS. It is a trading system meant for searching for liquidity sources. In the future, this experience may be used on the US options market.
On the other hand, earlier it was said that in the new year the cryptocurrencies featuring a high level of privacy would be fully recognized by the market – investors would be ready for such products. The Dash is on the list, though its privacy, in fact, might not be quite full: there are ways to track at least a part of the transaction.
Technical factors also played their part. The Dash price has reached a strong support level together with the BTC which inspired the investors to buy.
By Dmitriy Gurkovskiy, author at RoboForex Blog
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.