Dash price analysis: DASH/USD reverses Monday's gains

Dash, now the 23d largest digital asset with the current market value of $503 million, topped at $57.76 on Monday and reversed the gains during early Asian hours on Tuesday. The coin has started the downside correction after four consecutive days of growth. At the time of writing, DASH/USD is changing hands at $54.19, down over 4% since the beginning of the day. Despite the retreat, the coin is still 3.3% higher from this time on Monday. The coin has gained 35% in recent 7 days amid growing trading volumes. Dash is most actively traded at P2PB2P against BTC and USDT. 

The coin that positions itself as a way to financial freedom to everyone, received additional support from the news that Burger King in Venezuela now accepts DASH as a means of payment. Currently, the cryptocurrency is accepted only in one outlet; however, the company plans to expand the option to all 40 cafes in the country. Apart from DASH, cryptocurrency owners of Venezuela can pay for burgers and Cola with Ether (ETH), Litecoin (LTC), Binance Coin (BNB) and Tether (USDT).

DASH/USD: technical picture

From a technical point of view, the coin has started a natural correction. The RSI (Relative Strength Index) both on daily and intraday charts has reversed to the downside from an overbought territory, which is a signal for further decline. The initial support is located on the approach to $53.00. This area is reinforced by SMA50 (Simple Moving Average) 1-hour and the upper line of the daily Bollinger Band, and the price is likely to return inside the Band.  Once the above-said support is cleared, the sell-off may continue with the next focus on psychological $50.00 followed by SMA50 (Simple Moving Average) daily at $49.00. This MA was broken on January 5, now it serves as strong support that is likely to slow down the bears for the time being. 

On the upside, we will need to see a sustainable move above $55.00 for the upside to gain traction. This barrier is created by the middle line of 1-hour Bollinger Band and it separates us from a more significant psychological resistance at $57.00 followed by the recent high of $57.57. Once it is out of the way, the upside is likely to gain traction with the next focus on SMA100 daily at $59.58 and $60.00.

DASH/USD daily chart