Dash Price Analysis: DASH/USD Looking to Escape The Stubborn Block of Consolidation after BitGo Addition

  • DASH/USD is stuck within a chunky block of consolidation, as price action narrows further, subject to a breakout.
  • BitGo adds DASH to its list of supported cryptocurrencies due its “instant payment” and “privacy payment” features.

DASH/USD has been trading within a very mundane range, with price action continuing to narrow. It has been stuck within, given the current mode of consolidation. This form has been evident for around six weeks now. The average range is seen from $221 – $175. DASH isn’t the only cryptocurrency to be trading in such as way. Several of its peers across the board are seen to be moving in a similar fashion.

Dash Developments

BitGo has announced they will be adding Dash (DASH) to their list of cryptocurrencies, including within their services. BitGo are a proclaimed market leader in institutional-grade cryptocurrency investment services. They serve as a blockchain security company. Given that DASH is becoming more and more acknowledged within the cryptocurrency market, BitGo are keen to support it. DASH is the 13th largest cryptocurrency by market cap, seen at $1.49 billion in overall value. Therefore BitGo users will be able to generate wallets for Dash and is anticipated to start at some point in the next couple of weeks. The CEO of BitGo Mike Belshe, explained that the addition of Dash is due to the cryptocurrency’s “instant payment” and “privacy payment” features that are proving useful for many people.

Despite the latest positive integration for the Dash foundation, limited reaction has been seen for its native token.

Technical Review – Daily Chart

DASH/USD daily chart

DASH/USD has been firmly trading within a chunky consolidation block. This came after the depressed price received much needed support on 22nd August. It was propped up by a strong touted demand zone. This area trcked from $125 – $135, where the buyers flocked in, firmly preventing further downside. DASH/USD had been stuck within an extremely stubborn bearish trend. This was running from the start of May, downside seen for around a total of almost four months. On August 27, the price surged higher, jumping as much as 57%, over a six-day period – moving from around $140 up to highs of $230. Bulls ran into tough resistance, observed at the 23.6% Fibonacci, of the latest mentioned downtrend. After that, it was forced to trade within the earlier mentioned, chunky consolidation block.

In terms of the price wanting to see further upside, the 23.6% Fibonacci acting as resistance will need to be broken. Should $230 be firmly cleared, the next wall is seen at the above Fibonacci level, 38.2%. DASH/USD was last rejected there on 20th July, during some relief upside from the heavy downward trend. Looking at support, that can be seen at the range of the highlighted consolidation block. A breach of convincing breach of $175, could see a drop down to the above-mentioned demand zone, $125 – $135.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.