One of the leading scalable payment providers in the world, DASH, has attained a significant level in the crypto industry. But like other cryptocurrencies, the price of DASH is subject to volatility, and its value can fluctuate significantly in a short period.
Unfortunately, Since February 16, 2023, DASH has witnessed a loss of about 45.45%, bringing the coin down to $40.88.
This DASH downtrend has left investors and traders wondering what could be chasing the price down.
Bearish Market Sentiment For DASH Pushes Price Downward
According to the 24-hour trading chart, the price has steadily decreased since the bears took full control of its market. This is a result of negative market sentiment towards DASH.
This report shows DASH’s market sentiment is bearish, while the Fear & Greed Index shows a neutral 51. Notably, data from Dash Explorer has observed that the Blockchain is experiencing more activities lately. This could be a long-term dump as investors fear to hold DASH further as Dash Explorer recorded that it has more output from its blockchain than input.
Today’s DASH price is $41.50, down by -5.89% in 24 hours. It is currently down by 17.00% within the last 7 days. But its 24-hour trading volume has gained 6.3% at $72 million.
What Lies Ahead?
The crypto asset is trading below its 50-day and 200-day Simple Moving Averages (SMAs) and attempting to form a Death Cross. This is generally considered a bearish sign.
As DASH tries to form a Death Cross, it could lead to further selling pressure, as traders and investors may take this as a sign to sell their holdings or to take short positions. The SMA indicator suggests that both the long-term and short-term trend is bearish.
The Relative Strength Index confirms the bearish momentum as the high selling pressure is high. The RSI with a reading of 24.50 shows that DASH is currently in the oversold zone indicating a potential selling opportunity.
The Moving Average Convergence Divergence (MACD) is below the signal line, and the histogram is below zero; this indicates a bearish trend.
When the MACD line falls below the signal line, it suggests that price trend momentum is slowing down and there’s an increase in selling pressure. In addition, when the histogram is below 0, it confirms that the bearish momentum and the decline may continue.
Overall, the combination of the above indicators suggests that the market is currently bearish, and traders should trade with an extreme risk management strategy.
Featured image from Pixabay and chart from Tradingview.com