Can DASH crypto rally further after a 77% surge in Futures volume?
Positive sentiment and rising trading volume strengthen DASH’s chances of extending its rally.
Dash [DASH], the privacy cryptocurrency, has been on the rise, with the asset crossing over 10% in gains in the early hours of the 23rd of October. Notably, market sentiment points to further upside for DASH as bullish momentum continues to build.
DASH bullish momentum strengthens
Based on recent movements in the Aroon and Moving Average Convergence Divergence (MACD) indicators, chart analysis suggests that DASH may continue to rise.
At the time of writing, the Aroon indicator showed that the Aroon Up (orange line) had crossed above the Aroon Down (blue line), suggesting there has been more buying pressure.
Often, the greater the disparity between the Aroon Up and the Aroon Down, the stronger the buying pressure in the market.
Therefore, the market remains bullish, with a reading of 100.00% for the Aroon Up and 42.86% for the Aroon Down, confirming that bulls are still in control.
Additionally, the bullish outlook has intensified with the Moving Average Convergence Divergence (MACD), which has formed a bullish crossover, with the blue MACD line crossing above the orange signal line.
This classic bullish formation often attracts more buyers as investors continue to accumulate the asset.
Funding Rate and OI rise
Capital positioning in the perpetual market has hinted at why there has been a surge in DASH’s performance.
The Funding Rate, an indicator that tracks capital positioning in the perpetual market and categorizes it as predominantly long or short, shows that the former is the case.
The Funding Rate moved from the negative territory of -0.0080% to a high of 0.0056% as writing. A positive Funding Rate indicates that long positions outweigh short positions in the perpetual market.
Likewise, there has been a surge in capital inflows into the perpetual market as the Funding Rate turned positive.
Open Interest (OI) surged by over 16%, with an additional $14 million in fresh capital inflows, putting DASH’s total perpetual market capital at roughly $87.62 million as of this writing.
The surge in the Funding Rate and OI also points to investors rotating capital into DASH’s perpetual market as they anticipate a further rally.
DASH sentiment and volume improve
Sentiment and volume remain largely positive, as the consensus among investors is that DASH is likely to sustain its surge in the near term.
At press time, sentiment for DASH stood at 4.22, implying a strong bullish outlook and suggesting that investors are likely to keep accumulating the asset.
CoinMarketCap’s sentiment scale ranges from -10 to 10. When sentiment is significantly positive, as it is for DASH, there is a greater likelihood of the rally continuing.
Likewise, there has been a noticeable surge in volume. In the perpetual market alone, trading volume was up 77%, reaching $218 million. Volume and price rising at the same time strengthen the case for an asset sustaining its upward move.
Final Summary
- DASH gained over 10% as the Aroon and MACD formed a bullish crossover, suggesting further upside potential.
- DASH’s Funding Rate turned positive at 0.0056%, while Open Interest rose over 16% and perpetual trading volume climbed 77% to $218 million, pointing to increased bullish positioning.
