09/11/2018/09:00CET
This is not a shill of DASH. I am a technical chart analyst and geopolitical follower and want to update you on some interesting things about dash.
First the TA...
This is what my channel on Steemit is about, so I will start with this.
Here is the daily chart of the DSHUSD trading pair on Bitfinex...
- we see a cup formation in the chart over the last month. Price bottomed at the 150usd mark representing a higher low in the longer timescale.
- Of more interest is the cupping formation of the volumes. This is super positive. Bitfinex is one of the few Fiat/Crypto platforms and this is a fiat pairing. This can be considered fiat capital entering DASH. (I don't want to get into the debate of whether USD on Bitfinex is real or just USDT in disguise.)
- DASH is forming a classic wedging formation. Higher lows, and lower highs. I have marked them here is light green.
These wedges typically constrain price action tighter and tighter and then portends a change in sentiment. A new market direction so to speak. - The 50 and 100 dsma are squeezing price action down onto the rising 21 dema momentum indicator. This also portends a directional trend change in DASH.
- We find support on an important support/resistance level of 153 usd having tested it for almost a month following the drops which were largely a sympathy move with traditional market, which have started their long journey down to fair value.
- A rally to 225 usd is quite possible at this point, if not then we will probably take another bounce off support at 130usd.
Now the external fundamentals...
Macro money flows in Sth America
DASH has been the go to crypto solution in the worsening monetary situation broiling away in sth America.
Venezuela may be the best known failed financial state, but there are a handful of countries following in similar footsteps: Argentina and Brazil just to name 2.
With US financial tightening not showing signs of stopping, this will cause all countries and corporations that enjoyed the seemingly endless flow of cheap US denominated debt, are now facing 3 closing doors:
- Interest rates on that debt are rising, and the rate of rise is what we need to watch. A 1% increase in interest rate from a level of 2% is a 50% rise. Another way to look at this is your repayments just went up 50% bro!
- And with QT (Quantitative tightening, which the opposite of QE or Quantitative easing, the media euphemism for money printing, so QT = the opposite of money printing, money removal!), the amount of USD floating around the world is being soaked up and removed now. That means countries and corporations that need to make repayments on debt denominated in USD are now faced with the problem of acquiring this currency to make the payments.
- And last but not least, these 2 above effects combine to create the third headache. The appreciation of the USD against all other currencies, especially these that are over indebted in USD.
These forces are positively reinforcing factors that more and more countries will have to grapple with as US financial trajectory continues on its path.
Dash to the rescue
I have been following developments in Colombia, Brazil and #Venezuela. Economically Venezuela, the way it was is gone. It is in a financial twilight. In this state, people die, people flee, and increasingly people fight back. Often not targeting the correct things but they have fight in them. Under these conditions, people are only concerned with survival. Prosperity and building for the future are fantasies they dream of when things get better.
I mention #Colombia and #Brazil here because they are neighbouring countries and have to deal with a collapsing neighbour. They themselves have their own economic problems as well, Brazil being better covered in the news.
#Dash comes into the picture as one of the cryptos who's community have taken proactive steps to try to fill the monetary void created by this financial collapse in Venezuela.
An intrepid young man by the name of David Hay @DavidHay, whom I have followed in youtube for some time made the courageous decision to act on his convictions and relocate to Cucuta Colombia, a hot spot for people fleeing the economic collapse of Venezuela.
He has run into many interesting and instructive problems on his quest, ones which we would all profit from learning about. I suggest you follow him.
I want to leave you now with an article from Valuewalk.com. The interesting take away was a quote from the CEO of the Latin American Exchange BitINKA partnering with DASH.
Venezuela is a tragic case of man made disaster. Economics is an amazing development of the human condition. It enabled us to advance as a species many orders of magnitude faster than natural selection was moving. But Economics is an awesome weapon as well. Wielded in the wrong way, it can wreak havoc on a gargantuan human scale.
TA meets Fundamentals
Whenever we have a confluence of factors pointing in the same direction around a tradable thing, speculative interest rises. I have laid out a few arguments from my personal perspective on how DASH is making moves that may portend higher valuations in the near future.
#Fiat Currencies have become a means by which sovereign states (as equal or subservient partners to...) and global banks control populations.
#Cryptocurrencies, (and here I talk not of utility tokens that enable all sorts of yet exotic use cases, I speak of coins aiming to be real useable currency) really can be the golden solution in cases when failing fiat currencies "wreak havoc on a gargantuan human scale". One of (but not the only) hurdles is critical mass adoption. When chains of economic relationships combine in adoption (a merchant, his suppliers and his employees, all together), then adoptions accelerates exponentially. Are we reaching the correct primordial economic conditions for a crypto explosion. Failed economic states are the perfect preconditions for this to happen. So the more economic havoc, the higher the chance for a crypto takeover.
And when suddenly a cryptocurrency supplants a fiat currency, it is likely that the crypto will be hard to be supplanted, considering how hard crypto are to kill.
As always guys, leave comments, have fun and trade safe.