Fundamental analysis: Burger King to the rescue
It has been long known that Venezuela is currently one of the leading countries to pioneer the merchant adoption of cryptocurrencies. In the last week of December, Burger King Venezuela announced it will start accepting crypto payments in one of its stores as a pilot project, before including 40 other locations in 2020 as well.
Dash found itself on the list, alongside Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Binance Coin (BNB), as well as stablecoin Tether (USDT).
Due to Venezuela’s huge financial problems, the use of cryptocurrencies has been boosted over the years as citizens look for alternative payment methods due to the collapse of the national currency.
According to Dash’s CEO, Ryan Taylor, the coin is the most-used cryptocurrency in Venezuela.
“The progress we made in Venezuela is real. We see evidence of it growing constantly. We’re managing to sign up larger and larger chains. We just signed up our largest chain: 22 pharmacies in Caracas, and we’re in negotiations with point-of-sale systems at this point,” said Taylor in a recent interview for the Cake DeFi YouTube channel.
“None of that work would be possible without Dash Merchant out there having built up a couple of thousand initial mom-and-pop type merchants. I think that the work in Venezuela is going to continue.”
Technical analysis: Dash targets the $80.00 mark
Dash recorded a 5-time low in the last week of December, before it started marching higher. As seen in the chart, the bulls successfully cleared the first two levels of resistance, namely the 100 Daily Moving Average (DMA), and the descending trend line (the red line). The chart suggests that investors will continue buying DASH as they attempt to take the price action to $80.
The bulls are now targeting the second layer of resistance around the $80 mark, where the 200-DMA and the horizontal resistance are located. A trip north of $80 would also mark a fresh 3-month high for DASH.
On the downside, the previous resistance has now become a solid support around the $60 mark. Should the bulls fail to push the price towards $80, we may see a pullback to $60 in the near term. In case the first layer of support gives way, a test of the 5-year lows below $40 may come into play again.