The cryptocurrency market is buzzing with activity, and DASH, the popular privacy-focused token, has caught investors’ attention after a recent rally. After surging nearly 130% in a short span, DASH briefly broke into triple digits, but the rally quickly faltered. Here’s a breakdown of what happened and what might be next for this privacy coin.
Why Did DASH Face Resistance at $100?
DASH’s sharp increase brought hope for a sustained breakout above $100. However, selling pressure quickly mounted, leading to a 12% decline, bringing the price to around $74 at the time of writing. The Chaikin Money Flow (CMF) indicator showed a bearish divergence early on, signaling weakening market sentiment even during the rally.
Essentially, while DASH’s price created higher highs, the CMF indicator showed higher lows, indicating declining capital inflows. This often happens during hype-driven price action, where traders push prices up without fundamental or volume-backed momentum. When such momentum fades, corrections are likely to follow.
Key Technical Indicators to Watch
Currently, DASH’s price is holding at the critical 61.8% Fibonacci retracement level near $73, also known as the ‘bull market support floor.’ A breakdown below this level could signal a bearish trend shift. If this happens, the next downside targets might be the 23.6% Fibonacci level near $50.
For bullish traders, renewed strength could come if DASH breaks back above $83, allowing the price to retest the psychological $100 level. However, broader market conditions and trader sentiment are uncertain, which might discourage buyers.
How Traders Are Positioning DASH
Macro indicators also show a shift in market dynamics. DASH’s funding rate indicates short positions have dominated long contracts over the past week. Persistent bearish sentiment suggests traders are positioning for further downside, potentially validating the bearish outlook in the short term.
What Does This Mean for Investors?
With current price trends, potential investors should monitor DASH closely. For those considering a dip-buying strategy, technical levels such as $73 and $50 could be vital to watch. Risk-averse investors might wait for better confirmation of a bullish breakout before entering the market.
A Product Recommendation for Crypto Traders
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Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Always conduct thorough research or consult with a financial professional before making trading decisions.
