Dash [DASH] rose to $48 for the first time in three months, then dropped to a low of $44. At press time, DASH was trading around $45, marking an 8.5% jump on the daily charts, and its trading volume surged by 65%.
What’s driving DASH upside momentum?
Notably, DASH’s recent gains were driven by Dashpay’s plan to host its DashCon event in Amsterdam on the 2nd of September.
The upcoming event has captured the market’s attention, incentivizing investors to return to the market.
Moreover, Dash Core Group aims to hit another major milestone in September. On the 3rd of September, the mobile-shielded functionality could arrive for Android beta testing by DashCon.
These functionalities target fast payments, InstantSend, and a self-funding treasury. Moreover, such moves could strengthen DASH fundamentals, which in turn can trigger actual demand.
Could profit-taking threaten DASH’s gains?
Unsurprisingly, the recent price hike has created a profit-taking window, especially for those who have held during periods of extended weakness. In fact, as DASH flipped $40 three days ago, profit-taking skyrocketed.
Over this period, Spot Netflow has remained positive. At the time of writing, Spot Netflow was around $1.7 million, up from $1.1 million the previous day.
A sustained period of positive Netflow implies that sellers have dominated the market over the said period. Often such market behavior has brought about weakness, and prices tend to retrace under such pressure.
Is the trend sustainable?
Although sellers on the spot are showing stronger determination, the bullish structure remains intact. Notably, the Bulls vs. Bears indicator (BvB) has remained positive for three consecutive days and was hovering around 41 as of writing.
A positive value for BvB suggests that demand is still strong and recent selling is inadequate to flip the market.
At the same time, the Stochastic Momentum Index (SMI) had an upward trajectory, rising to 25, suggesting that the trend is still overall bullish.
Therefore, these market conditions indicate that currently, demand is absorbing profit-taking pressure. If it holds, DASH will revisit $48 again and could flip $50. However, if selling pressure persists and the upcoming events fail to bring more demand, a drop to $38 could follow.
Final Summary
- DASH climbed to $48 for the first time in three months, then retraced to $45 at press time.
- DASH surged as the upcoming Dashcon event in Amsterdam created fresh demand, with the network’s shielded privacy pool recording increased deposits.
