Key Takeaways
How is DASH coping with the wider crypto market’s downtrend?
Shrinking capital in circulation has forced DASH into a sharp downward sweep on the chart.
Is there any good news for the privacy coin?
The accumulation spree from spot investors might be worth looking at.
Dash [DASH] has recorded one of the steepest outflows across the market over the last 24 hours, with its price falling by 17% to $67.07.
In fact, market analysis revealed that perpetual traders have been largely responsible for this bearish shift, following the altcoin’s monthly gains of 50%. However, retail capital from the spot market is continuing to flow in.
Why did DASH fall on the charts?
The privacy-focused token, DASH, has fallen at an interesting time. The broader privacy segment has been expanding lately, with the same recording a growth rate of 85%.
The drop came on the back of capital circulating in the derivatives market. About $66.84 million of it, at press time, had been driven largely by sellers.
This became clearer as the funding rate turned negative, indicating that sellers have been paying the funding fee to maintain their positions in both the Spot and Futures markets.
Source: Coinglass
At the time of writing, the Open Interest–Weighted Funding Rate, which reflects overall market direction, had also flipped negative. This seemed to confirm that sellers may be dominating the altcoin’s price action.
If this downward pressure persists, DASH could slide further into the lower zones, potentially triggering liquidations across more open positions.
Where is DASH heading next?
According to AMBCrypto’s analysis, another drop could follow on the charts.
At press time, DASH appeared to be trading within a visible demand zone ranging from $61 to $67. Under normal conditions, this area could support a bounce. However, momentum has been weak.
If selling pressure continues to strengthen, the price may move towards the next lower demand zone between $42.15 and $51.28. This zone has previously served as a consolidation area for 16 days before the breakout.
Source: TradingView
Interestingly, the Money Flow Index (MFI), which measures capital inflows and outflows, suggested that liquidity may be attempting to re-enter the market.
The MFI started trending upwards, with the same having a value of 39.70. Still, with the index below the bullish threshold of 50, the rebound will remain unconfirmed until DASH pushes above this level.
A hike in spot demand?
Finally, spot investors have shown notable interest in DASH despite the decline. This week alone, these investors have spent just over $14 million purchasing DASH from the market.
In the last 24 hours, buyers accumulated tokens worth approximately $2.55 million.
Source: Coinglass
This level of buying during a market pullback suggests that investors view the latest decline as an opportunity to accumulate for long-term positions.
If this trend continues, DASH could recover from its press time support zone and gradually move towards higher levels on the chart.
