DASH price soared nearly 130% in a short period of time, raising expectations for a sustained rise above $100. The rally briefly pushed the privacy-focused cryptocurrency to triple-digit levels in intraday trading.
However, the breakout failed and selling pressure soon followed, raising the risk of a deeper correction.
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Dash holder has been withdrawn
Market sentiment was already showing signs of weakness before the recent pullback. The Chaikin Money Flow Indicator had been hinting at a bearish divergence a few days before the decline. While DASH prices continued to form highs, CMF made new lows, highlighting the weakening of capital support behind the rally.
This pattern often reflects hype-driven price action rather than volume-backed strength. Capital outflows increased despite rising prices, suggesting distribution by informed participants.
When momentum lacks a sustained influx, rallies tend to slacken. DASH is currently facing the effects of that imbalance as selling pressure accelerates.
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Macro indicators further support bearish expectations among traders. Short positions have dominated long contracts for almost a week, according to DASH funding rate data. This imbalance indicates that traders anticipated the downside before the recent reversal and took positions accordingly. As a result, these bears are likely to make significant gains.
This continued negative funding reflects a decline in bullish belief. Short-term sentiment weakens further as the bearish position becomes justified. This dynamic discourages push buying and increases downside momentum, especially when broader market conditions remain uncertain and risk appetite has slowed.
DASH price has a lot to lose
DASH has risen nearly 130% over the past week, hitting an intraday high of $96 on Friday. Since then, the altcoin has fallen about 12% and is trading near $74 at the time of writing. The price is currently holding above the 61.8% Fibonacci retracement level near $73.
This level is sometimes called the bull market support floor and is important for trend continuation. A breakdown would confirm a shift to bearish structure. Considering the prevailing indicators, DASH could fall towards $60. The 23.6% Fibonacci level near $50 will be the next downside target.
The bearish outlook will weaken if DASH recovers from the 61.8% retracement. Reduced selling and strong holders’ belief may result in price stabilization. A move above the $83 resistance would indicate new strength and pave the way for DASH to test the $100 level again.
