Dash is a digital cryptocurrency that can be used for payments. It is also built on Bitcoin’s blockchain technology, but there are few changes. It uses a model called ‘Masternodes’ that offers better transaction speed and privacy than Bitcoin.
Masternodes are a concept of verifying transactions with the help of miners where the miners get rewarded for their work. In Bitcoin, it is a simpler concept, but in Dash, it is divided into two parts Masternodes and Miners. A user must have at least 1000 DASH to become a Masternode.
It is a mixture of two key phases, ‘Digital’ and ‘Cash,’ launched in 2014 as Xcoin by Duffield. Later the name was changed to ‘Darkcoin’ and finally renamed ‘DASH’ in 2015.
DASH is a fork of Litecoin and LTC is a fork of Bitcoin. That means all these three coins use similar technology with little improvement, which does not necessarily mean the later coins are better than the Bitcoin.
At the time of writing this post, DASH was trading at around $41.75. However, it has been consolidating between $60 and $40. Based on the price analysis, it is a suitable time to buy for the short-term gain because it is trading around the support level.
On the daily chart, technical indicators support this view because you can find green histograms on the MACD chart since the last week of June, and RSI is around 40. Though candlesticks are forming in the lower half of the Bollinger Bands, we still think it is the right time to buy DASH.
If it breaks the consolidation phase, the next resistance will be around $90. That means if you invest now, you will get huge returns in the long term.
However, after reaching the high of $440, it has been in a downtrend forming lower highs. Now it is trading below the strong support level of $60. Most of the technical indicators are bearish, which means it is not the ideal time for long-term investment.
We think you should invest when it crosses the level of $70. However, you should not treat it as an asset like Bitcoin. It can be volatile in the long term, so you should follow the price action closely even if you are investing for the long term.