The Dash price is reversing course once again. However, this time it favours the bears. Poor price action suggests a 25% downside move lies ahead.
DASH is last at $126.28, down $0.47 (-0.38%).
The 62nd largest cryptocurrency, Dash, has never lived up to the early hype surrounding the project. Those who have followed the market for more than a decade will remember when DASH was above $1,550 and had a $10 billion market cap.
Today, the coin is a shadow of its former self, and the project that aimed to improve Bitcoin’s anonymity has obscured into, well, anonymity.
Furthermore, should a new wave of optimism blanket the cryptomarket, I believe the rally will not offer a one-size-fits-all solution for investors this time around.
Instead, they are likely to prefer Store-of-value (BTC), blockchains such as Ethereum and Cardano, and Decentralized Finance (Defi) projects when allocating capital.
This may leave some first-generation cryptos struggling for a positive catalyst.
The daily chart shows Dash remains capped by a descending trend line from the bounce following the May 19th collapse. This is visible at around $138.00 currently.
Furthermore, the price is being propped up by a horizontal support line at $125.00. Although, given the lethargic performance, support could soon give way. This could result in the DASH price returning to June 22nd’s $101.01 low.
This would be considered a do or die threshold for the price. A failure to maintain a three-digit big figure could lead to Dash giving back all of 2021’s gains and target the $75.00 low from January.
Although this is by no means a certainty, it is a probability.
The negative outlook remains valid as long as DASH trades below the restrictive trend line at $138.00.
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