Key takeaways
What’s Driving DASH’s Recent 30% Rally and Yearly High?
Strong derivatives inflows, rising open interest and bullish technical patterns are fueling the rally.
Could DASH’s momentum slow down in the short term?
Yes, increased profit-taking can trigger a correction if selling pressure exceeds bullish demand.
Dash (DASH), the layer 1 blockchain token designed to enhance the Bitcoin model, is attracting increasing interest and funds from investors.
Over the past 24 hours, the privacy-focused asset has surged 30%, despite relatively weak community sentiment: only 78% of investors currently hold bullish positions.
What drives the market
Capital inflows into the derivatives market have been a key driver of DASH’s recent performance.
Open Interest (OI), which measures the total amount of capital circulating in this segment, increased by 55% at the time of publication, reaching $45.65 million during this period.
Source: CoinGlass
This increase corresponds to a sharp increase in open long positions.
Data from CoinGlass shows that the Long/Short ratio has exceeded 1, implying that there is more long volume than short volume in the market.
A continued increase in long trading volume to the upside would imply that investor expectations for the asset remain bullish, suggesting that its upward trend may continue.
The IO-weighted funding rate also turned positive at 0.0087%, its first positive reading since the day before, indicating renewed market strength.
The rally is gaining strength
DASH’s recent move has now pushed it to a new yearly market high of $62.
A technical chart pattern known as the “Cup and Handle” has developed, which often precedes a significant price rise.
In the short term, analysis conducted by AMBCrypto indicates that there is a strong chance that DASH will see a further rise towards $67, which would mark its highest level since 2023.
Source: TradingView
At the time of writing, the Moving Average Convergence and Divergence (MACD) indicator has also formed an uptrend known as the Golden Cross.
This occurs when the blue MACD line crosses the orange signal line, implying that the ongoing bullish momentum is maintaining depth and increasing the probability of a new high forming.
Profit taking could slow down momentum
The recent increase in derivatives liquidity has caused some spot investors to start selling their assets.
Over the past day, around $4.32 million worth of DASH was sold in the market, likely a profit-taking move by investors who have seen recent gains.
While such sell-offs are common, if the sell-off continues over the next few days, it is possible that market sentiment could change and DASH could face a short-term correction.
Source: CoinGlass
For now, however, bullish momentum appears to be outweighing selling pressure, suggesting that DASH could still post a significant new high if market conditions remain favorable.
