Key takeaways
What’s Driving DASH’s Recent 30% Rally and Annual Rally?
Strong derivatives flows, rising open interest, and bullish technical patterns are fueling the rally.
Could DASH Momentum Face a Short-Term Slowdown?
Yes, increased profit taking may trigger a correction if selling pressure outweighs bullish demand.
Dash [DASH]a Blockchain Layer-1 token designed to improve upon the Bitcoin model, has attracted increasing attention and funds from investors.
In the past 24 hours, privacy-focused assets are up 30%, despite a relatively weak community sentiment – only 78% of investors currently hold bullish positions.
What is driving the market?
Capital flows into the derivatives market have been the main driver of DASH’s recent performance.
Open interest (OI), which measures the total amount of capital working in the sector, was up 55%, at press time, to $45.65 million during the period.
Source: Coinglass
This increase corresponds to an increase in open long positions.
Queen Glass Data It shows that the buy-to-sell ratio has risen above 1, which means that there are more buy volumes than short volumes in the market.
A continued increase in long trading volume in an uptrend will imply that investors’ expectations for the asset remain bullish, indicating that it may continue in an uptrend.
The weighted financing rate also turned 0.0087%, its first positive reading since the previous day, indicating renewed market strength.
Gathering brings strength
DASH’s latest move has now pushed it to a new yearly high of $62 in the market.
A technical chart pattern known as a “cup and handle” develops, which often precedes a significant price rise.
In the short term, analysis by AMBCrypto indicates that there is a high chance that DASH will make another bullish rally towards $67, which would represent its highest level since 2023.
Source: Trading View
At the time of writing, the Moving Average Convergence Divergence (MACD) indicator has also formed a bullish pattern known as a golden cross.
This occurs when the blue MACD line crosses above the orange signal line, indicating that the continued bullish momentum is maintaining depth and increasing the probability of a new top being formed.
Profit taking may slow momentum
The recent increase in derivatives liquidity has caused some spot investors to start selling their assets.
In the past day, about $4.32 million worth of DASH was sold on the market – likely a move to take profits from investors locking in the recent gains.
While such sell-offs are common, if the sell-off continues over the next few days, there is a possibility that market sentiment will change and DASH may face a correction in the short term.
Source: Coinglass
However, at the moment, the bullish momentum appears to be outweighing the selling pressure, suggesting that DASH could still post a significant new high if market conditions remain favorable.
