Dash Crypto is Soaring: Here’s a Possible Reason

Dash crypto price has regained momentum in the past few days as investors start to count days for the next halving event. The coin jumped to a high of $62.54, the highest point since March 6. It has surged by over 41% from its lowest point this month and by ~106% from its year-to-date low.

Dash halving countdown

The main reason why Dash has jumped sharply is that the network’s halving event is around the corner. For starters, halving is a period when the number of block rewards to miners are reduced by half. The concept was introduced by Bitcoin in a bid to reduce its supply and boost its prices. In the case of Bitcoin, halving happens after every four years.

Dash has incorporated the concept of halving because of how it was started. Dash originally started as a hard fork of Litecoin, one of the oldest and most successful copycats. Therefore, the main reason why Dash crypto price has risen recently is that its halving event is about to happen. This also explains why Litecoin has been a top performer since June last year.

Data compiled by AltcoinsBox shows that the next Dash halving will take place in the next two months. Precisely, it will happen on June 20th. The 7th halving will happen in 2024. When the halving happens, the block rewards will be reduced from 2.487 to 2.312 DASH.

Read more: How to buy Dash.

The way Dash halving works is different from Bitcoin and Litecoin. Instead of reducing the block rewards by half, it reduces rewards by 7.14% every year. According to the developers, this model is much better than that of Bitcoin and Litecoin because it is more predictable.

Dash crypto price prediction

The daily chart shows that DASH has been in a slow comeback in the past few days. Along the way, the coin has jumped above the 25-day moving average. It has also formed what looks like a rising wedge pattern that is shown in blue. This wedge can also be seen as a bearish pennant pattern since it happened after the coin dived sharply.

Therefore, there is a likelihood that the coin will soon have a bearish breakout. If this happens, the next key level to watch will be at $50. A move above the key resistance at $64 will invalidate the bearish view.