One of the world’s leading scalable payment providers, DASH, has reached 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 over a short period of time.
Unfortunately, since February 16, 2023, DASH has experienced a loss of around 45.45%, bringing the coin down to $40.88.
This downward trend in DASH has left investors and traders wondering what could drive the price down.
Bearish market sentiment for DASH pushes prices lower
According to the 24-hour trading chart, the price has steadily declined since the bears took full control of its market. This is the result of the market’s negative sentiment towards DASH.
This report shows that DASH’s market sentiment is bearish, while the Fear & Greed index is showing a neutral 51. In particular, data from Dashboard Explorer observed that the Blockchain is seeing more activity lately. This could be a long-term drain as investors fear holding DASH further as Dash Explorer has recorded that it has more output from its blockchain than input.
Today’s DASH price is $41.50, down -5.89% in 24 hours. It is currently down 17.00% in the last 7 days. But its 24-hour trading volume gained 6.3% to $72 million.
What awaits us?
The crypto asset is trading below its 50-day and 200-day lows Simple Moving Averages (SMA) and attempting to form a death cross. This is generally considered a bearish sign.
As DASH attempts to form a death cross, this could lead to additional selling pressure as traders and investors may view this as a sign to sell their holdings or go short. The SMA indicator suggests that the long-term and short-term trend is bearish.
THE relative strength index confirms the bearish momentum as the strong selling pressure is strong. 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 downtrend.
When the MACD line breaks below the signal line, it suggests that the momentum of the price trend is slowing down and there is an increase in selling pressure. Moreover, when the histogram is below 0, it confirms that the bearish momentum and the decline can 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 graphic from Tradingview.com