Could This Privacy Coin DASH Towards Another 550% Rally? The Charts Tell More
Dash (DASH) has caught the market’s consideration once more. The privacy-focused coin surged greater than 30% previously 24 hours and stays up over 33% on the week, briefly tagging the $68 degree earlier than pulling again. Even after that pause, the DASH value continues to outperform the broader crypto market, signaling power moderately than exhaustion.
Still, the rally has not been with out hiccups. Some indicators warn that momentum wants affirmation earlier than Dash can try a bigger transfer. At the identical time, a number of structural indicators intently resemble a previous setup that preceded a 550% rally.
Volume Fails to Support The Price Rise, Explaining the Pullback
The first warning got here from On-Balance Volume (OBV), a volume-based indicator that tracks whether or not shopping for or promoting strain is dominant. OBV provides quantity on up days and subtracts it on down days, making it helpful for confirming whether or not value strikes are supported by actual demand.
On Dash’s daily chart, OBV has been trending decrease since mid-November, forming a descending trendline. During the current rally to the $68 peak, the value pushed increased, however OBV failed to interrupt above that trendline. This divergence explains why DASH stalled as an alternative of extending cleanly.
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In easy phrases, patrons pushed the value increased, however quantity didn’t develop sufficient to verify the transfer. That doesn’t invalidate the rally, however it does clarify why a short-term pullback was seemingly. For the DASH value to regain momentum, quantity should ultimately observe value.
Money Flow Looks Possibly Stronger Than the Last 550% Fractal
While OBV lagged, Dash’s pattern construction tells a extra constructive story. Over the identical January rally, the DASH value reclaimed all main exponential shifting averages (EMAs) on the day by day timeframe. EMAs give extra weight to current costs and assist establish pattern shifts sooner than easy shifting averages.
Dash is now buying and selling above the 20, 50, 100, and 200-day EMAs concurrently. The final time this precise alignment occurred was in early October, simply earlier than Dash rallied roughly 550% over the next weeks.
There is a vital distinction this time. Back then, the rally was largely sentiment-driven. Privacy coins were surging as Zcash printed repeated spikes, and Chaikin Money Flow (CMF) was extremely risky, continuously dipping under the zero line. CMF measures whether or not capital is flowing into or out of an asset utilizing each value and quantity.
Now, CMF is holding above zero and compressing close to its descending trendline. If CMF breaks above that trendline, it could sign sustained capital inflows, not simply speculative bursts. That shift would help a structurally pushed rally moderately than hype alone.
Balanced Leverage Keeps Risk Contained as DASH Price Levels Come Into Focus
Derivatives knowledge suggests the rally is just not but crowded. On Bybit alone, throughout the DASH/USDT perpetual pair, lengthy and quick publicity stay comparatively balanced. Liquidation ranges on either side are comparable — lengthy leverage at $5.28 million and quick leverage at $5.47 million.
This means there is no such thing as a fast squeeze danger forcing the value violently in both course.
This steadiness provides the DASH value room to maneuver organically. The key resistance zone sits between $61-$69, an space the DASH price lost in November and has not reclaimed since. A clear break and maintain above $69 would open upside targets close to $77, adopted by $104, which might signify roughly 73% upside from present ranges.
On the draw back, dropping $51 would weaken the bullish construction. A deeper breakdown may expose the DASH price to a pullback towards the $35 area if broader market situations deteriorate.
Dash’s current pullback was justified by weak quantity affirmation. But the broader setup stays constructive. EMA alignment mirrors a historic 550% rally, and capital circulate is more healthy now than throughout that transfer. If quantity and CMF verify, the DASH value could not want sentiment anymore to maneuver increased once more.
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