The dash (DASH) cryptocurrency might soon return to a $300 mark against the background of overall bearish market sentiment, as the number of buying orders on the market is continuing to demonstrate heated growth.
The dynamics are being spurred by bitcoin (BTC), which is experiencing heightened levels of volatility amidst increasing adoption and emergence of investors seeking to capitalize on the cryptocurrency’s gains.
Several important metrics are suggesting that dash has a chance of growing to $400 in the near future. Dash hit a new all-time high on Feb. 19, surging past the $330 mark on some exchanges. The cryptocurrency has thus been jettisoned back to the top 30 CoinMarketCap ranking, with its capitalization standing at $2.4 billion.
The number of large transactions with dash is currently surpassing 700 daily, with the number of daily active users exceeding 100,000 for the first time. Such values were observed last time at the end of 2017.
Despite a pullback in price to $223, which occurred over the past days and the failure to move past the immediate critical value of $340, many exchange metrics are remaining in positive territory, indicating that DASH may not only roll off to record highs, but also beat its own records in the short term.
The second half of the year may become a turning point
Trading has been on the increase for dash, with the volume of transactions between traders demonstrating a daily indicator in the $2.5 billion range – a record since January 2018. The number of buy orders is always well above sell orders with 11 largest crypto exchanges sowing a clear accumulation of large holders.
The growth of accumulated funds among long-term investors, as opposed to short-term cruisers, shows that growth above $400 is unlikely to be expected in the next couple of months.
However, technical analysis indicates that the second half of the year may become a turning point.
Current values show that there are 762,000 addresses with an average hold period of three years, according to IntoTheBlock. In opposition, the number of short-term investors has decreased by 4% over the course of a month and by 20% over a year period.
Most likely, dash will remain in the $200 to $240 range for some time and the next attempt to win back the $300 mark can be made if it successfully tests the next level of support at $260.
A bullish reversal would see DASH move closer to its local high of over $320, a level last seen in June of 2018. According to Robert Githinji, almost 4,800 traders bought about 53,000 Dash in that price range and are now awaiting an upward trend reversal.
Pressure from financial regulators on private coins
There are several factors that can determine how aggressively the bullish trend develops for dash on the market. At this point, the rise in price may be restrained by pressure from financial regulators on private coins – a class of assets that dash was recently classified into, based on erroneous interpretation of its functions and features.
The developers of the cryptocurrency are currently engaged in negotiations with the representatives of financial authorities and exchanges. Recent releases from the development team describe the negotiations as “fruitful,” giving grounds to believe that in the near future they will be able to protect dash’s status of a private coin.
This is also evidenced by the findings of analysts from Chainalysis and Perkins Coie, as well as analyst Andreas Antonopoulos, who recently stated that dash is technically no more private than bitcoin.
The release of DashPay, which is expected to become the world’s first social crypto wallet, should also be considered as a growth factor for DASH, along with the high degree of popularization of the coin in Asia and Latin America.
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