After maintaining a low margin during the weeks of market weakness that followed, the DASH crypto finally broke out. The altcoin hit a four-month high of $50.98.
At the time of writing, the Dash token was trading at $49.3, up 30.8% on the daily charts, adding to its weekly gains of 38%.
During the same period, altcoin trading volume surged 339% to $290 million, indicating intense bullish momentum in the market.
Market hits with FOMO as traders continue rally
Following the market’s technical breakout, traders rushed, continuing the rally out of fear of missing out (FOMO).
The derivatives market has seen an increase in capital flows. Derivatives volume increased 419% to $369.5 million, while Open Interest (OI) jumped 57.7% to $78.3 million.
The OI and increased volume in tandem indicated increased market participation and increased capital flow, as traders positioned themselves.
Interestingly, most of these traders rushed to open long positions. The Long/Short ratio increased to 1.01, dominated by Binance traders.
The increased demand for long positions suggests that most investors were anticipating further gains and positioning themselves accordingly. In turn, this demand further strengthened the market, leading to stronger bullish momentum.
DASH Momentum Turns Strongly Bullish
With the massive influx of capital into the market, buyers of DASH overwhelmed sellers, pushing them aside. In fact, buyer strength increased to 84 while seller strength dropped to 15.
At the same time, the average bullish movement increased to 64, while the average bearish movement fell to 4, signaling a strong bullish directional bias.
A positive directional bias of around 2.7 suggests that buyers have significantly pushed sellers out of the market.
Often, increased demand reduces supply, creating a shortage, which has historically reinforced bullish momentum and led to higher prices.
Along with this, DASH’s Relative Strength Index (RSI) reached 73, holding deeper in the bullish zone. The RSI at these levels suggested that buyers had dominant control over the market.
Likewise, the Relative Volatility Index (RVI) reached 62, further suggesting that prices rose with stronger momentum. At these levels, RVI confirmed that bullish volatility dominated, with buyers extremely aggressive.
The combined RSI and RVI indicators signal potential for the trend to continue. So, if the recently seen momentum continues, DASH will hold $50 and target $57, with $63 as upper resistance.
For this bullish outlook to hold, DASH needs a daily close above $50. However, if the momentum becomes speculative and fades soon after, the altcoin will return to $36.
Final Summary
- Crypto Dash rose 30%, broke out of a consolidation range to hit a four-month high of $50.9.
- DASH’s bullish momentum strengthened as traders continued the rally, but speculative risks remain.
