Dash on Sunday surged as much as 13 percent against the US Dollar as supposed stablecoin tether (USDT) lost over 4 percent of its value.
The DASH/USD pair closed yesterday at 155.90-fiat while continuing to its slow upside momentum. Today's Asian session witnessed the pair erasing its recent gains and forming intraday lows towards 152.78-fiat. The green candles began appearing after that, constructing a smooth uptrend in which traders entered longs on higher high formations. It went on until the DASH/USD pair established an intraday high at 172.68-fiat. The trend did endure a pullback, and it is undergoing a near-term bearish correction at the time of this writing.
Tether (USDT) Effect
In the past 24 hours, over 24 percent of the dash trading volume originated from a tether-enabled market, giving a clear picture of traders moving their USDT holdings to altcoins like dash. The stablecoin has lost its peg against the US Dollar once again, now trading 4 cents lower than its supposed valuation.
The crypto market as the whole had witnessed a considerable volume and price surge during the last USDT drop towards 85 cents in Kraken's USDT/USD market. The present market conditions somewhat point to a repetition of historical price behavior, with top coins undergoing a collective bullish behavior, including cardano, litecoin, and bitcoin cash.
Dash is looking like a safe spot for traders willing to park their unstable USDT holdings to other coins. While the impact appears to have boosted the coin's market cap from $1.30 billion to $1.42 billion, any correction hereon could balance the upside with an equal downside.
Payment Service Launch in Venezuela
Before the surprising breakout, dash was consistently forming higher highs on its daily charts. The coin closed its regular sessions at $150.71, $153.00, $153.57, $153.86, and $155.58 - from Tuesday throughout Saturday, respectively. The fundamentals around dash were strong already, owing to a new SMS payment service launch in Venezuela. Some people in the South American nation, currently hit with the one of the worst hyperinflation blunders in economic history, are now choosing digital currencies like dash over state-issued bolivars.
Dash Text, as the service is called, caters to all the Venezuelans, especially the ones with no access to the web. It allows them to send and received money represented in dash tokens via SMS.
The previous bullish action in dash markets looks more credible than orchestrated. But, as the coin now heads to close another session, it could soon face threats from the global crypto market factors. Traders who were holding dash so far might want to squeeze out some daily or weekly profits by exiting their long positions, eventually erasing the gains made during the past five days.
A strong level at 148-fiat supports DASH/USD as of the time of writing.
Featured Image from Shutterstock. Charts from TradingView.