Technical Analysis and Market Entry: Dash Has Been Plummeting for Eight Straight Weeks; 2018 Low in Sight
- Dash’s price is stuck within an aggressive downward trend, declining for the past eight consecutive weeks.
- The developer team at Dash was forced to upgrade the network due to a possible attack on the mainnet.
DASH/USDT: Recent Price Behavior
The Dash price is under pressure as it trades at its lowest level since March. DASH/USDT has been falling for the past eight consecutive trading weeks, having lost some 50%. The price has fallen from the heights of $188 down to the most recent low at $91. It has been stuck within this bearish trend since late June, failing to find any form of stabilization.
Sellers intensified the pressure this week, following a breakout to the downside from a bearish pennant structure. There was a brief slowdown from the plunging, and it was seen between 15 July to 11 August. During this period of consolidation, the noted pattern was able to form and initially contain price action.
As a result of current price behavior, the psychological $100 mark was lost; allied with the critical level breach, an area of demand is being tested to the downside. It runs from $105 down to $95, which has previously proven to act as both respective supply and demand territories.
Dash Upgrades Network Following Possible Attack
The developer team for Dash recently released an upgrade to its network, due to concerns around security, following transaction spikes on its mainnet. They have announced Dash Core v0.14.0.3; this will see the upgrading of its security parameters. Enhancements are going to be based on the wallet and P2P client for the Dash cryptocurrency.
In an official blog post, the Dash team reported:
“Last week there was an abnormally high network load on the Dash network consisting of around a million 1 input 1 output transactions with a fee just higher than 1 duff per byte.”
“After contacting all likely community members who could have executed this and finding that none of them were involved, it appears that the artificial load on the Dash network was either a stress test by someone outside of the Dash developer community or was an attempted attack.”
Developers at Dash believe that its digital currency network was potentially hit by either an external stress test or a malicious attack.
Given the described downside price pressures and key supporting area breakouts, eyes are on further moves south. The bears appear to be making good headway for a total reversal of the 2019 gains. In terms of targets, $80, $70 and then 2018 low, down at $60-$55 range, are possibly eyed. Stops would be placed above the psychological $100 mark and pennant at $110.
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.
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