Most cryptocurrency markets are not looking all that great right now. With the Bitcoin price stuck just below US$3,900 once again, no major movements are expected. Dash is the only currency bucking the trend right now, thanks to an 11.94% gain on the day. As a result, the Dash price is now back above US$360. Unfortunately, it appears this is just another pump-and-dump cycle initiated by Bithumb traders.
Dash Price Notes a Sharp Increase
Although the Dash price is more than capable of increasing on its own, regardless of Bitcoin, such events are very rare. In most cases, the Dash price alone would only increase if someone were effectively pumping its value in the hopes of making some quick profits. Considering how this altcoin usually has very little trading volume, it does not take much effort to influence the markets in an effort to drag others along in the process.
Looking at the current Dash price chart makes it clear that someone is trying to move the price up. Right now, one Dash is trading at a value of US$361.84. That is an 11.94% Dash price increase over the past 24 hours. It’s pretty interesting, especially considering nearly all other markets are in the red right now. Then again, some altcoins have been trying to break free of Bitcoin’s dominance for quite some time now. None of these currencies have been overly successful in doing so, though.
No one will deny there is a genuine demand for Dash all over the world. Especially with its conference tour kicking off this week, things are bound to get very interesting for this particular altcoin. However, one should not expect any major market movements just because of that, as most people still have to buy Bitcoin first before getting their hands on Dash. There are some fiat gateways, to be sure, but they are few and far between, depending on where one lives.
With over US$102 million in 24-hour trading volume, things are seemingly picking up for Dash. As is always the case, one has to take a closer look at the exchanges providing said volume to see what is really going on. Right now, it seems the traders over at Bithumb are artificially pumping the Dash price for some unknown reason. This exchange represents 56.75% of all trading volume for this cryptocurrency, which is both spectacular and worrisome at the same time.
Indeed, this looks very similar to how the Bitcoin Cash price evolved yesterday. That brief increase was also driven by traders at Bithumb and has resulted in a net loss of 7.17% over the past 24 hours. It is not impossible Dash will go through a similar scenario over the next few hours. Although all other exchanges follow Bithumb’s Dash price, their volumes are a lot lower in comparison. It would only take a small pushback for the Koreans to lose interest in this coin again and move on to the next.
While most Dash holders will be pleased with the current price trend, it will likely not last long. When the Bitcoin price is stuck in sideways momentum for a few days, some altcoins will experience brief pump-and-dump cycles. Most of these cycles originate on the Bithumb exchange, thanks to its zero-fee structure. For now, no one knows how long this Dash price increase will last, but rest assured it will drop below US$345 again before the day is over.