The Dash price has struggled in the past few trading sessions as investors react to the ongoing weakness in the cryptocurrency industry. The coin is trading at $165, which is about 25% below the highest point last week.
According to Coin Market Cap, the total amount of Dash in circulation are worth more than $1.6 billion, making it the 61st biggest crypto in the world.
The background: Dash was created in 2014 as a privacy-focused peer-to-peer cryptocurrency. The coin emerged from a hard fork of the Bitcoin blockchain and is known for using a self-funding model by using masternodes, mines, and the treasury. Using this model, the masternodes and miners receive about 45% of stake. It uses a modified version of the proof-of-stake mining method that is known as the X11 algorithm.
Dash is a well-known coin because of the security features it has put in place and the overall anonymity of its transactions. This anonymity comes from a feature known as PrivateSend that makes its transactions anonymous. It also has an InstaSend feature that allows transactions to be completed in seconds.
Therefore, Dash and other privacy-focused cryptocurrencies like Monero and Tezos have been in the spotlight this week after the FBI managed to recover Bitcoin funds sent to Russian hackers. Therefore, while it is too early to tell, there is a possibility that hackers will shift to these privacy coins.
The daily chart shows that things are not okay for Dash. The coin has fallen by more than 65% from its highest level this year. Further, the coin’s 50-day and 100-day exponential moving averages (EMA) have made a bearish crossover. The coin has also formed what looks like a bearish pennant pattern and moved below the neckline at $181.
Therefore, Dash will likely keep falling as bears target the next key support at $110, which was the lowest level in May. On the flip side, a move above $235 will invalidate this prediction.
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