Over the past month, Dash (DASH) has emerged as one of the most notable winners in the crypto market, with a substantial increase of over 385%. This remarkable rally paints an intriguing picture of the potential behind this privacy coin. Dash's price performance bears striking similarities to that of its competitor Zcash (ZEC), raising the question of whether Dash is poised for a breakthrough that will fuel its own explosive price rise.
When examining the technical structures of ZEC and DASH, it's striking that both coins exhibit nearly identical long-term patterns. Since 2017, both coins have been in a prolonged downtrend, with ZEC recently breaking above its descending channel line in September, leading to an explosive 634% surge to over $390 from a level around $60. These kinds of breakthroughs can not only change market dynamics but also play a crucial role in Dash's price development.
At Dash, we are currently testing the upper edge of its own seven-year descending channel. The relative strength index (RSI) Dash is trading around 78.70, indicating that there is still potential for further growth compared to ZEC. Is a breakout imminent? If Dash manages to break above the upper limit, this could propel the price towards the Fibonacci level of 0.236, which represents a course around $98 — a potential 400% increase from current levels.
Dash's technical profile, however, is not without risks. Historically, the coin has experienced sharp corrections of 85% to 97% during previous tests of the upper edge of its descending channel, particularly in 2018, 2021, and 2022. Currently, we are back in the critical area around $98-$100. If the buying pressure eases somewhat, a pullback towards $69, which aligns with the 200-2W exponential moving average (EMA), is possible. This would represent an initial 20% drop and form a key support zone for November or the end of December.
However, if selling pressure continues to increase, Dash could even fall back to the 50-2W EMAs around $34 and the 20-2W EMAs around $34.65 in the first half of 2026. In the most pessimistic scenario, we can envision a full retest of the lower trendline, which is located in the $14-$16 range, by 2026. This would complete the cycles within Dash's long-term descending channel again.
What are the main reasons for the recent rise in DASH?
DASH's recent rise can be largely attributed to ZEC's successful technical breakthrough, which fueled the entire sector. This has led to broader interest in privacy coins.
Why is the RSI of DASH important?
The RSI (relative strength index) is a crucial indicator that measures the strength of the current price trend. A high value, such as the current 78.70 for DASH, suggests there is still room for growth, but can also indicate an overheated market.
What impact does a correction have on investors?
A potential correction could prompt investors to prematurely reconsider their positions, especially if support levels fail to hold. This could impact overall market dynamics and force investors to reanalyze their strategies.