- Dash makes an entrance into the DeFi sector after a strategic partnership deal with StakeHound.
- A retreat is in the offing due to DASH/USD rejection at the 100-day SMA.
Dash recently exploded in the wake of pulling the 50-day Simple Moving Average resistance into the rearview, as discussed. The cryptoasset appears to have bottomed out at $65 amid a breakdown from August’s high of $105. A recovery ensued with DASH/USD closing in on the critical hurdle at $80. Unfortunately, Dash lost steam, hitting a barrier at $78.
Newly-created bridge links Dash to DeFi
Following a partnership with StakeHound, Dash users will soon have access to the decentralized finance (DeFi) sector. Essentially, tokens kept with StakeHound will be eligible to earn network rewards via the Dash masternode.
The process commences with Dash users depositing tokens in StakeHound. These tokens are instantly swapped into a wrapped ERC-20, referred to as StakedDASH. The new tokens are compatible with various DeFi platforms such as Curve Finance, UniSwap and Aave. Users can also convert the tokens into DASH.
On the other hand, Dash tokens will remain locked in a masternode where they will accrue a set standard rate for the network rewards. The new development opens the opportunity for DASH holders who could not meet the 1,000 tokens limit for operating a masternode. For now, only one DASH token is required to take part in staking.
Dash downside beckons following rejection
As earlier mentioned, DASH/USD rejection at $78, a resistance highlighted by the 100-day Simple Moving Average, cut short the rally from $65. A reversal is underway, with bulls working to avert losses to $70.
The 200-day SMA immediately cups upward movement. Exhaustion in the bullish camp is reinforced by the Relative Strength Index (RSI)’s inability to reach the overbought area. The horizontal motion highlights the calm before the storm.
DASH/USD daily chart
The TD Sequential Indicator just flashed a sell signal in the form of a green nine candlestick. The call adds weight to the bearish narrative. On the downside, the lower leg might extend to the 100 SMA, which also functioned as recent support. In case of extended losses, the 50 SMA is in line to absorb the selling pressure, but the primary support lies at $65.
DASH/USD daily chart
Looking at the other side of the fence
Although most technical indicators are bearish, on-chain metrics and particularly IntoTheBlock’s IOMAP model, reveals the absence of selling pressure. In other words, the path with the least hurdles is upwards.
DASH IOMAP chart
On the downside, immense support is accorded to the crypto, as shown by the model. The most robust buyer congestion zone runs from $73 to $74. Previously, nearly 72,000 addresses bought approximately 654,000 DASH in the range. It is doubtful that DASH will penetrate this zone for losses below $70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.