DASH Price Surges Nearly 130% but Faces Growing Selling Pressure
DASH price experienced a remarkable surge, rallying nearly 130% in a short span and briefly pushing the privacy-focused cryptocurrency into triple digits during intraday trading. This sudden spike fueled expectations of a sustained move above the $100 mark. However, the breakout failed to hold, and selling pressure quickly intensified, raising concerns about a potential deeper correction.
### Market Sentiment Shows Early Signs of Weakness
Market sentiment had already hinted at underlying weakness prior to the recent pullback. The Chaikin Money Flow (CMF) indicator signaled a bearish divergence days before the decline. While DASH price continued to form higher highs, the CMF printed higher lows, signaling weakening capital support behind the rally. This pattern often suggests that the price action is hype-driven rather than backed by strong volume.
Capital outflows increased even as prices rose, indicating possible distribution by informed participants. Without sustained inflows to support momentum, rallies like this tend to unravel. DASH now faces the consequences of this imbalance as selling pressure intensifies.
### Macro Indicators Confirm Bearish Outlook
Further reinforcing the bearish expectations, DASH’s funding rate data shows that short positions have dominated long contracts for nearly a week. This imbalance reflects traders’ anticipation of downside and their positioning ahead of the recent reversal. As a result, these bearish investors are likely to realize considerable gains.
Persistent negative funding rates indicate declining bullish conviction. As bearish positions gain validation, short-term sentiment weakens further. This dynamic discourages dip buying and amplifies downside momentum—especially amid broader market uncertainty and muted risk appetite.
### Critical Support Levels and Potential Downside Targets
DASH’s rally over the past week saw it reach an intraday high of $96 on Friday before retreating by approximately 12%, trading near $74 at the time of writing. The price currently holds above the 61.8% Fibonacci retracement level, around $73, which often acts as a crucial bull market support floor.
A breakdown below this level would confirm a shift toward a bearish structure. Given the prevailing indicators, DASH could potentially drop toward $60. Beyond that, the 23.6% Fibonacci retracement level near $50 would emerge as the next downside target.
### What Could Stabilize DASH Price?
The bearish outlook would weaken if DASH manages to rebound from the 61.8% retracement level. Reduced selling pressure combined with stronger conviction among holders could help stabilize the price. A move above the $83 resistance level would signal renewed strength and pave the way for DASH to retest the $100 threshold once again.
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DASH’s recent price action underscores the delicate balance between short-term hype and sustainable growth. Traders and investors should closely monitor key technical levels and market indicators to gauge the cryptocurrency’s next move.
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