Dash (DASH) is falling, and this time it doesn’t look like a routine pullback. The market seems calmer than it should during a healthy decline.
Meanwhile, some long-dormant parts have started moving again, which until now has only happened during uncomfortable moments in past cycles.
Is the tone around DASH changing?
DASH is out of the spotlight
Only a week after its mammoth rise of over 100%, DASH slipped towards the $69 level after failing to maintain its recent highs. On the daily chart, DASH was above its long-term moving averages at press time, but the rally lost strength.
The RSI has moved from overheated to almost neutral, while the MACD histogram has started to fade. The upside possibilities are diminishing.
Source: TradingView
Aggregate open interest has stabilized at around $90 million; traders close their positions instead of adding bets. At the same time, funding rates were negative, so short sellers were still willing to pay to stay in their trades.
Source: Coinalyse
Looking at the data, it appears that participation is clearly drying up. DASH is losing attention, and its sharp rise and rapid fall over the past week is a cause for concern.
Older pieces are awake!
There was a spike in Dash’s CDD multiple in November, meaning coins that had been inactive for years suddenly moved.
According to Joao Wedson, CEO of Alphractal, these increases tend to appear near market peaks and mark the start of longer distribution phases.
Source:
Activity has since calmed, but the alarm itself is still relevant given how long-term holders typically perform late in the cycle.
The stock of lost coins has stabilized after years of growth, so that a previously intact supply is returning to circulation.
Source:
As Wedson noted in his article X, this process can extend over weeks or months. But if we consider the loss of interest, this tilts the risk downward.
Final Thoughts
- DASH price risk increases.
- The movement of long-dormant DASH coins again adds end-of-cycle pressure.
