The beginning of the 2023 year has been very successful for DASH, and the price of this crypto added more than 80% to its value in the period from January 01 to February 16. But where is the price of DASH is going next, and what can we expect from the rest of July 2023?
Since then, the price of DASH continues to move in a downtrend, and bears continue to control the price movement. Today, Crypto Lists will discuss DASH price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Dash enables instant and cheap payments
- 2 Despite a completed halving, bear market remains
- 3 The Fed’s key role
- 4 Technical analysis for DASH
- 5 Important support & resistance levels for DASH
- 6 What speaks for the rise in the DASH price
- 7 What indicates further downfall for DASH
- 8 What do analysts and experts say?
Dash enables instant and cheap payments
Dash is an open protocol that enables anyone, anywhere in the world, to make instant and cheap payments without going through a central authority. Low fees and instant transactions make Dash the preferred method of payment, while DASH’s limited supply continues to attract investors who believe in its characteristics as a store of value.
According to analysts, this project has a bright future mainly because Dash solves two of Bitcoin’s biggest problems: the speed of transactions and the lack of privacy. Transactions with Dash are secure and visible to the entire network in under 1.5 seconds, while this cryptocurrency cannot be traced, and the coin’s history cannot be accessed.
Dash is used around the world as a practical alternative to credit cards, and businesses of all shapes and sizes accept it. Dash does not face problems with exchange rates, bank holidays, bureaucracy, or hidden fees, and it is especially popular in regions where technical access barriers exist to traditional payment systems.
Dash completed its halving last month at block height 1,892,161, and the current block reward is 2.3097 DASH. On the Dash blockchain, the block reward for miners is halved about every 840,000 blocks or every four years. The halving event is important for DASH because it affects how many new coins are issued, affecting the dynamics of cryptocurrency supply and demand.
Despite a completed halving, bear market remains
Even though Dash has completed its halving, the price of this cryptocurrency remains in a bear market, and the risk of further decline still persists. Fundamentally looking, the future success of this project mainly depends on the flexibility of its strategy in response to the competitors’ moves. Dash is competing with some heavy-weight players, and we can also not forget that regulations on the cryptocurrency market can be a threat to this cryptocurrency.
The current price of DASH stands at $33.4, which is more than 50% off from its 2023 highs, and a break below $30 would indicate that DASH could probably test the price level at $25. DASH is highly volatile and remains a highly risky investment, but the wider dynamics of the cryptocurrency market also play an important role in determining the price of DASH.
The U.S. Securities and Exchange Commission (SEC) pressure, together with recession fears and aggressive monetary policy from major central banks, will continue to have a major influence on the cryptocurrency market in the weeks ahead.
The Fed’s key role
According to the latest data, the U.S. economy added fewer-than-expected jobs in June, but persistently strong wage growth pointed to still-tight labor market conditions. To some analysts, this suggests the Federal Reserve will likely resume raising interest rates later this month. The federal funds rate is now from 5% to 5.25% (the highest level since 2006), and the main question remains how much time Fed will need to hold policy at restrictive levels to fight inflation.
Some analysts are warning that Fed will hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets. The next Federal Reserve meeting is scheduled for July 26, and according to a survey from the CME Group, markets are pricing an 86% chance that Fed policymakers will raise interest rates by 25 basis points. Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, added:
“If the Fed indicates it’s not done raising rates, all bets are off for crypto and other risk assets. If the Fed suggests it’s done with rate hikes, it should galvanize the bulls and reignite the bull run.”
Technical analysis for DASH
DASH has weakened from $77.83 to $25 since February 16, 2023, and the current price stands at $33.46. DASH might have a hard time holding above the $30 level in the upcoming days, and a break below this level would indicate that DASH could probably test the price level at $25 again. On the chart below, I marked the trendline, and as long the price of DASH is below this trendline, we can’t talk about a trend reversal, and the price of DASH remains in the SELL-ZONE.
Important support & resistance levels for DASH
The beginning of the 2023 year has been successful for DASH, but the price of DASH has remained under pressure since February 16, 2023, and the risk of further decline is still not over. On this chart (the period from November 2022), I marked important support and resistance levels that can help traders to understand where the price could move.
DASH remains under pressure, but if the price advances above the resistance that stands at $40, the next target could be $45 or even an important resistance level at $50. The current support level is $30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $28. If the price drops below $25, which represents a very important support level, the next target could be located around $20.
What speaks for the rise in the DASH price
According to the rules of technical analysis, DASH remains in a bear market, but if the price advances above the resistance that stands at $40, the next target could be $45 or even an important resistance level at $50. Fundamentally looking, the future success of DASH depends on the flexibility of its strategy in response to the competitors’ moves, but the regulations on the cryptocurrency are also very important.
Expectations for a 25 basis point hike from the Fed at its July 26 policy announcement stand at roughly 86%, and market participants will also closely monitor comments from Fed Chair Jerome Powell after the statement for clues on how long the hiking cycle may last. Any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies, and DASH could advance from the current price level if the Federal Reserve announces it’s done with rate hikes.
What indicates further downfall for DASH
There has been a significant drop off in the number of whale transactions for DASH in the last four months, and when whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.
If the whales continue to reallocate funds to other investments, the price of DASH could take an even bigger hit in the upcoming weeks. The price of DASH is currently above $30 support, but a break below this level would indicate that DASH could probably test the important support level that stands at $25.
What do analysts and experts say?
Although Dash completed its halving last month, the price of this cryptocurrency remains in a bear market, and the risk of further decline still persists. DASH is highly volatile and remains a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.
At the same time, the macroeconomic landscape remains uncertain; major central banks continue aggressively fighting inflation by raising interest rates, and risk-on assets such as cryptocurrencies could suffer even more in such conditions.
The U.S. central bank is widely seen raising rates by 25 basis points to the 5.25%-5.5% range this month, and analysts are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. Stocks aren’t the only assets that could significantly lose their value, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.