Things are looking pretty green today, but one cryptocurrency is running faster than most. Today we’re going to talk about Dash, a speedy little crypto that’s leading the race towards mass adoption. Are the recent gains signaling a long-term bullish reversal?
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What is Dash?
Dash stands for Digital Cash, and that’s the goal of the project: making cryptocurrency easy and simple to use. According to CEO Ryan Taylor, Dash is trying to become the “Venmo of Crypto.” It’s already making major strides in Venezuela, where you can spend Dash at Subway, Papa John’s and Church’s Chicken.
Dash’s Unique Governance
How is that possible? Part of it is due to Dash’s unique governance structure, which combines mining with proof-of-stake consensus. Anyone with over 1000 coins can stake their coins to run a masternode in exchange for more DASH. Masternodes help process instant or private transactions, and they also protect the network from 51% attacks.
The Masternodes also control DASH’s governance. Ten percent of all mining rewards are used to support companies that improve Dash technology. This government system helps introduce Dash to new users, but some critics say it’s too centralized.
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Dash Analysis on the Charts
Regardless, Dash has seen a 13% jump versus Bitcoin in the past couple of days. Versus the USD the surge is even higher, at around 30%. Looking at the DASH/BTC daily chart you can see a double bottom bullish reversal chart pattern forming after the pair reached a one-year-low on December 6th. This may indicate further gains on a medium-term basis. However, we don’t have any other bullish reversal indications and the DASH/BTC pair continues below the daily Ichimoku cloud.
With that, long-term investors may need to wait longer to be able to truly celebrate Dash. Any gains may be capped at the 23% Fibonacci retracement level of 0.027 in the medium-term.
Now I’d like to turn to you and hear from you. Do you think Dash can surpass other cryptos in terms of mass adoption? Where do you think its value is headed to? Let me know in the comments, and subscribe to get more updates. Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.