Dash integration with Uphold might not safe it from freefall

POLONIEX:DASHUSD   Dash / US Dollar (calculated by TradingView)
Dash is a privacy-based coin, which is one of the top 15 cryptocurrencies based on the market capitalization. Last week - on October 23, 2018 - during Money 20/20 conference held in Las Vegas, Dash (Digital Cash) has announced the integration into the Uphold. Press-release:

Uphold is a leading digital money platform that is providing financial services. Members of the platform can perform instant transactions between each other completely free of charge. Now, after Dash integration, Uphold users can buy and sell Dash with a credit card or a bank transfer, directly through the Dash wallet wallet.

This shows that Dash aims to increase the usability and popularity of the coin, by making it more accessible for an average person. Some could make a conclusion, that more users equals higher price. This could be true in most case, however there are some points worth looking at.

Dash is a privacy-based coin, and governments don’t particularly support “hidden transaction”. Private transactions mean that payments can be maid for goods and services, while Government will have absolutely no record of them and therefore no taxes will be collected. At this stage of the cryptocurrency adoption, it seems that legalization and government support is extremely beneficial for any coin. To the contrary, isn’t cryptocurrency meant to be private in the first place?

On the other hand, there always will be those, that wish to stay in the dark, however, this don’t seem to be at the same scale as if government would support it. Certainly there is a use-case, but the question remains; how big?

Getting to the price action, after the Uphold integration announcement, Dash has gained 5.7% the same day. Price went up from $154 to $163 were it bounced off the 23.6% Fibonacci retracement level, along the mid trend line of the descending channel . Market reaction to the news wasn’t very positive to say the least.
After the bounce price went down and rejected the 78.6% Fibonacci support. The rejection was very clean, disregarding the fact that afterwards there was spike below that level - $150. This is also a round physiological price, that together with Fib level makes it a very strong support level .

DASH/USD bounced off resistance as well as support, indicating on the range trading, in other words consolidation and/or accumulation phase. It might be a short or mid-term consolidation, but market will be expecting a breakout in anyway. Currently, short-term downtrend has high probability of continuation as Dash remains below the 200 moving average and rejected the midline of the channel along with Fib resistance. If it breaks and closes below the recent low at $147, next support at $140 is likely to be tested. Break below the $140 level, might push buyers to liquidate their coins, resulting in a stronger drop in price. Then price can be expected to test a $100 support, which seems to be the key level in the long run.

Now lets consider the scenario where uptrend will dominate. First of all, Dash must break above the $163 resistance level , which might be the first signal of bullish momentum. Next upside target is located at $$188, that is 61.8% Fibs, where highest trade volume has been recorded recently.

Overall, there is no clear short term trend and price can be expected to consolidate. Waiting for price breakout and looking for extra confirmations could be the way to go with Dash.
Comment: Dash trading at the support
The World’s First Integrated Cryptocurrency Exchange
Special Deals on CRD token:
Good job!
@MrPython, thank you!
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out