DASH breaks out to a 4-month high – Can bulls hold $50?

After holding within a thin margin for the following weeks of market weakness, DASH crypto finally broke out. The altcoin jumped to a four-month high of $50.98.

As of this writing, the Dash token traded at $49.3, up 30.8% on the daily charts, adding to its 38% weekly gains. 

Over the same period, the altcoins’ trading volume jumped 339% to $290 million, indicating intense bullish momentum in the market.

Market hits with FOMO as traders chase the rally

Following the market’s technical breakout, traders rushed in, chasing the rally out of fear of missing out (FOMO). 

The Derivatives market recorded increased capital flow. Derivatives Volume rose 419% to $369.5 million while the Open Interest [OI] jumped 57.7% to $78.3 million. 

OI and volume rising in tandem indicated increased market participation and capital flow, as traders positioned themselves. 

Interestingly, it seems most of these traders rushed to open long positions. The Long/Short Ratio rose to 1.01, with Binance traders dominating. 

Increased demand for long positions suggested that most investors anticipated further gains and were positioning themselves accordingly. In turn, this demand further strengthened the market, leading to stronger upside momentum. 

DASH momentum flips strongly bullish

With massive capital flowing into the market, DASH buyers overwhelmed sellers, pushing them aside. In fact, Buyer Strength rose to 84 while Seller Strength dropped to 15. 

At the same time, the average bullish move jumped to 64, while the Average Bearish Move dropped to 4, signaling a strong bullish directional bias. 

A positive directional bias of around 2.7 suggests buyers have significantly displaced sellers from the market. 

Often, increased demand reduces supply, creating scarcity, which has historically strengthened upside momentum and led to higher prices. 

Coupled with that, DASH’s Relative Strength Index (RSI) rose to 73, holding deeper into the bullish zone. The RSI at these levels suggested that buyers had commanding control of the market. 

Likewise, the Relative Volatility Index (RVI) rose to 62, further suggesting prices have moved upward with stronger momentum. At these levels, RVI confirmed bullish volatility dominated, with buyers extremely aggressive.

Combined RSI & RVI indicators signal potential for trend continuation. Thus, if the momentum recently witnessed holds, DASH will hold $50, and eye $57, with $63 as the upper resistance.

For this bullish outlook to hold, DASH needs a daily close above $50. However, if the momentum turns speculative and fades shortly after, the altcoin will pull back to $36 again.

Final Summary

• Dash crypto rallied 30%, broke out of a consolidation range to reach a four-month high of $50.9. 
• DASH upside momentum strengthened as traders chased the rally, but the speculative risks remain.