After falling below $30, buyers quickly defended the key Dash (DASH) level. The coin bounced to a local high of $35 before settling at $34.3, up 11.02% on the daily chart at press time.
However, trading volume fell 42% over the same period, signaling lower market participation and warning that the recovery may not be sustainable.
DASH rebounds amid renewed risk appetite
After Dash signaled a recovery from the recent decline, traders rushed to the market to speculate. As a result, the altcoin’s Open Interest (OI) increased by 19% to $46 million at the time of writing.
Such a rise in OI suggests that significant capital was invested in opening new positions in the derivatives market. So, traders opened long or short positions.
Capital flows into the futures market reflect a radical change in behavior. Over the past five days, DASH has seen sustained outflows with sellers dominating the futures side. However, this trend reversed in the last 24 hours, with $23.4 million coming in and $22.9 million going out. As a result, Futures Netflow jumped 140% to $508,000.
Such a jump suggests that most traders have started opening new positions, either short or long. While increased speculative activity increases the risk of a further price collapse, it could also reinforce bullish momentum, albeit only for a short period.
Profit taking on the spot, as skepticism remains
Unsurprisingly, as DASH rebounded, traders who fell underwater rushed to cash out. Data from CoinGlass showed that in the spot market, traders consistently made profits at every opportunity.
As such, the Netflow spot has remained positive over the last three days. At press time, Netflow stood at $208,000, reflecting a higher foreign exchange deposit.
The market dominance of sellers during this period suggests skepticism as they expect the recovery to slow. Usually, such market behavior has weakened the market and effectively undermined the chances of recovery.
What do momentum indicators say?
As DASH recovered $30, the bullish momentum strengthened slightly, with the Stochastic Momentum Index (SMI) surpassing its signal at -55 at press time. However, the indicator remained negative, keeping the overall outlook bearish. At the same time, DASH traded below the MACD‑SMA, once again confirming the prevailing downtrend.
Taken together, these momentum indicators suggest that recent speculative activity has proven insufficient and that weakness may expand. Therefore, for the uptrend on the daily charts to continue, DASH must close above the MACD-SMA at $41.
However, if speculation fades, DASH will break through the $30 support again and fall to $29.
Final Summary
- Dash rose 11% after successfully defending $30, reaching a local high of $35.
- DASH has seen renewed risk appetite, leading to an uptick, although market structure remains bearish.
