Dash recently broke above its descending trend line on the 4-hour time frame to indicate that a reversal from the downtrend is due. Price is also starting to form a steeper rising trend line to reflect stronger bullish momentum.
The 100 SMA is just about to complete its bullish crossover, which would indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse.
However, RSI is already indicating overbought conditions or exhaustion among buyers. Turning lower could signal a return in selling pressure and a likely pullback to nearby support areas like the ascending trend line or moving averages’ dynamic inflection points.
Similarly stochastic is making its way back to the overbought zone and could be due to turn lower to reflect a pickup in selling pressure as well. The line in the sand for a correction might be around the broken longer-term falling trend line, as a move back below this could signal a continuation of the slide.
Cryptocurrencies have been on a tear in the past few days, but only Dash has been able to score another leg higher while the rest of its peers are in correction mode. News that the company is venturing into new areas of business through creating Dash Ventures has led to more buying interest for the coin.
In a livestream on YouTube, Dash Core CEO Ryan Taylor shared how they made progress in creating this entity. He mentioned:
“One of the thorniest issues we came across was how to distribute investment gains back to the network. Any direct distributions would require all recipients to produce [KYC/AML] documentation, which would be costly, time-consuming and generate immediate tax implications for recipients.”
Furthermore Taylor explained that their solution is to avoid distributions altogether and”direct the Foundation to buy DASH on the open market and destroy it to facilitate value transfer to all DASH holders equally.”