The price of DASH had a massive spike today after the recent DeFi announcement. The digital asset was trading at around $66 before a significant increase towards $78.57 in less than 8 hours. DASH announced the collaboration with StakeHound, allowing holders to earn masternode staking rewards and exclusive access to DeFi services.
DASH Partners with StakeHound Enabling Ethereum DeFi Users to Earn Rewards with StakedDASH@stakedTokens partners with DASH NEXT and Dash Core Group to offer DASH users access to DeFi applications while earning staking rewards.https://t.co/gdf7I1pxEI pic.twitter.com/c3qWlI8Y12
— Dash (@Dashpay) October 19, 2020
The token StakeDASH will be used to bridge the gap between DASH and the Ethereum DeFi ecosystem. It will also allow holders to greatly benefit from yield farming through major DeFI applications while still receiving stable staking rewards.
With DeFi, different Blockchains are finally coming together. I am very excited about this partnership as it provides DASH users the benefits of DeFi applications such as lending or borrowing, and Ethereum users with an easy way to use DASH’s established global payment ecosystem.
Said Felix Mago, co-founder of DASH NEXT. The way it works is actually quite simple, users only need to deposit their stakeable tokens which will be wrapped on an ERC-20 token. Users will then have access to DeFi services like lending, borrowing, trading, and derivatives.
DASH Price Reacts Positively
Just minutes after the announcement, the price of DASH exploded 5% followed by further continuation moves to the upside. The price peaked at $78.5 and it’s still currently trading at $76, not showing signs of weakness just yet.
On the 4-hour chart, we can see the RSI being extremely overextended, however, because this price move was fueled by the news, we should ignore this indicator for now. The MACD was already bullish but has gained a lot of strength, especially after DASH turned all three SMAs into support levels.
On the daily chart, the price got rejected from the 200-SMA and the 100-SMA between $76 and $77. However, it did climb above the 50-SMA at $71. Besides both resistance levels in the form of SMAs, the next clear price target is at $80, the high of September 12.
The MACD has been bullish on the daily chart since September 27 while the RSI is not yet overextended. Ideally, bulls would like to see DASH closing above both the 100-SMA and the 200-SMA, however, remaining above $72 should still be considered bullish.
The IOMAP seems to confirm our theory as it shows very little resistance to the upside and a lot of support in comparison. The next strongest support area is located between $74 and $72.6. The most critical resistance area seems to be between $80 and $85.