DASH/USD Forecast: Dash Collapsing Amid Crypto Carnage

2022-01-25 02:32:30

(MENAFN- Daily Forex) Dash fell rather hard over the last couple of sessions, and on Monday managed to plunge below the $100 level. This is a major psychological loss, and at this point it is very likely that we will continue to see downward pressure. The market had hung on to the $120 level for quite some time, so it does make sense that we would see this market accelerate as the support level finally gives way.

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Keep in mind that there is a lot of concern out there when it comes to the Federal Reserve and tightening monetary policy. That takes a lot of risk appetite out of the market and smaller assets take an absolute beating as a result. Anything remotely close to technology is normally a major loser in these situations, and of course Dash is no different. In fact, you can say that it has been acting very much like the NASDAQ 100, so you may want to keep an eye on the chart as they have been relatively closely correlated assets.

If we break down below the bottom of the candlestick for the trading session on Monday, then the market is likely to go lower, perhaps testing the $75 level again, an area that was important for quite some time a few years ago. At this point, the market breaking down below there could open up the possibility of a move towards the $50 level, which has a lot of psychology attached to it. If we were to break down below there, it is hard to tell where this all ends up.

When it comes to trading Dash, you need to keep an eye on larger coins such as Bitcoin and Ethereum as well , because the crypto market is highly correlated to what happens with Bitcoin. The smaller coins will continue to get beaten down as long as we struggle in these larger crypto markets, but given enough time, if we can get stability over there, it can lead to an accumulation possibility in some of these smaller ones. At this point, it is very unlikely that we will simply turn around and bounce right away. Even if it does, it very likely that that would end up simply being a selling opportunity.

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