Dash Erases the Gains it Saw After the 2 MB Block Size announcement

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Dash Erases the Gains it Saw After the 2 MB Block Size announcement

Dash Cryptocurrency Update: Dash, the 6th largest cryptocurrency by market cap, saw a fair bit of volatility in the past week. After surging to all-time-high levels, it is now searching for direction.

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While everyone was watching the war between Bitcoin and bitcoin cash, Dash exploded over the weekend. After reaching the all-time-high level of 600, DASH/USD erased over half of its gains and has been closing the past few trading sessions below 50% Fibonacci retracement level at around $420.  

What’s the Dash Cryptocurrency Announcement About?

The Dash network operates on a two-tier platform. It splits the platform between miners and network “nodes” which approve new transactions.

To create an incentive system for nodes to help the network run smoothly, the value of each new block on the blockchain is attributed equally. 45% of the new block go to the miners and another 45% to the master node.

The remaining 10% goes into a joint pool of funds held by the network. Last week, one of the platform’s developers announced a network update which will increase the transaction size for each block to 2 megabytes (MB).

That’s the size which bitcoin developers just rejected, electing to maintain a capped size of 1MB, while BCH has an 8MB capacity.

Dash cryptocurrency’s bigger blocks are just part of a network-wide upgrade called version 12.2. Besides the block size increase, this upgrade also entails a transaction fee reduction, security protections, speed upgrades, and the introduction of new wallets, among other features.

Dash Cryptocurrency Technical Analysis

After the big surge on the announcement, however, market participants now seem indecisive as to which direction to take DASH next, as the bears and bulls seem to be equally strong. At the moment. If anything. however, the future cloud of Ichimoku Kinko Hyo’s daily setup has turned sharply bullish.

The DASH/USD pair has been forming a series of spinning top candlestick patterns, suggesting it may have gone back to old habits of consolidation. The support levels are set at 61% and 78% Fibonacci retracement levels of 487 and 354 respectively.