Dash hits yearly low: Should you buy it for the long term?
Dash is an open-source blockchain technology, a fork of Bitcoin that also offers similar features with improved technology. However, after the FTX liquidity crisis, investors show less faith in DASH than in Bitcoin, but both are trading around the yearly low.
At the time of writing this post, DASH was trading around $33.57 after making a yearly low of $31. In the last five months, it was consolidating between $38 and $57. Will Dash trade towards resistance or support? Read our Dash coin price prediction to know!
On the daily chart, most technical indicators are bearish, and candlesticks are forming in the lower BB, which does not encourage investors for short-term investment because the DASH price may observe another downfall this year.
The next two weeks are vital because the DASH price either sustains over the level of previous support of $38 or forms a yearly low below $31. However, we have to analyze the weekly chart for a broader view.
After hitting an all-time high of $1642, it is now trading around $33! This highly volatile weekly chart has been in a downtrend. It could not cross the baseline of the Bollinger Bands in the last one year.
After a bearish engulfing candle, Dash is forming a green weekly candle, but it only suggests a short-term bullishness to regain the previous support of $35. If it decisively stays over the support, then it will consolidate within the previous range or break the previous resistance of $57 to start a bullish momentum.
However, the high possibility is that DASH will break the yearly low of $31 and form a lower low in the next few months because the sentiment is very bearish after the FTX liquidity crisis. People are worried about the sustainability and growth potential of such digital assets.
Indeed, there are some positive signs in technical indicators, such as Bollinger Bands lacks volatility and MACD is still bullish with green histograms that suggest positive sentiment. Still, MACD is a lagging indicator, so it may turn bearish within a few weeks.
If you believe in the potentiality of DASH for the long term, you should accumulate the coin at a lower price. Otherwise, invest in a safer digital asset like Bitcoin and Ethereum for the long term, and if you find good opportunities, you should trade in midcap and small caps to get quick profits.
