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$DASH price surged nearly 130% in a short span, fueling expectations of a sustained move above $100. The rally briefly pushed the privacy-focused cryptocurrency into triple digits during intraday trading.
However, the breakout failed, and selling pressure quickly followed, increasing the risk of a deeper correction.
Dash Holders Have Been Withdrawing
Market sentiment had already shown signs of weakness before the recent pullback. The Chaikin Money Flow indicator signaled a bearish divergence days ahead of the decline. While $DASH price continued forming higher highs, CMF printed higher lows, highlighting weakening capital support behind the rally.
This pattern often reflects hype-driven price action rather than volume-backed strength. Capital outflows increased even as prices rose, suggesting distribution by informed participants.
When momentum lacks sustained inflows, rallies tend to unwind. $DASH now faces the consequences of that imbalance as selling pressure accelerates.
Macro indicators further confirm bearish expectations among traders. $DASH’s funding rate data shows short positions dominating long contracts for nearly a week. This imbalance indicates traders anticipated downside and positioned accordingly before the recent reversal. As a result, these bears will likely observe considerable gains.
Such persistent negative funding reflects declining bullish conviction. As bearish positions gain validation, short-term sentiment weakens further. This dynamic discourages dip buying and increases downside momentum, especially when broader market conditions remain uncertain and risk appetite stays muted.
$DASH Funding Rate. ">
$DASH Price Has A Lot To Lose
$DASH rallied nearly 130% over the past week, touching $96 during Friday’s intraday high. The altcoin then dropped about 12%, trading near $74 at the time of writing. Price is currently holding above the 61.8% Fibonacci retracement level near $73.
This level, often called the bull market support floor, is critical for trend continuation. A breakdown would confirm a shift toward a bearish structure. Given prevailing indicators, $DASH could slip toward $60. The 23.6% Fibonacci level near $50 would then become the next downside target.
$DASH Price Analysis.">
The bearish outlook would weaken if $DASH rebounds from the 61.8% retracement. Reduced selling and stronger holder conviction could stabilize the price. A move above the $83 resistance would signal renewed strength, opening the path for $DASH to retest the $100 level once more.