Dash soars 49% in a day – Privacy coin mania captures the market
The swift rally of ZCash past a key resistance at $372 was accompanied by skyrocketing prices.
Key Takeaways
Why are Dash prices surging?
Its privacy token reputation could be causing a boost in demand as ZCash zoomed past multi-year resistance levels, leading to buyers looking for alternatives that might rally too.
What next for DASH?
Now is not the time to buy or go long – traders can wait for a pullback toward $70-$78, which they might or might not get. Investors can continue to HODL.
Dash [DASH] has rallied 49.7% in the past 24 hours, bursting past the $77.9 resistance level from early 2023. This came alongside a ZCash [ZEC] rally to a high of $449.8, a level it has not seen since 2018.
The strong trading volume over the past five weeks, combined with the demand for privacy coins, has not yet stalled. While Dash might be overextended in the short-term, it still remains firmly bullish.
It is highly unlikely that the privacy narrative loses steam quickly, with ZEC and DASH token prices at multi-year highs. This was a sign of firm bullish conviction.
Plotting the next Dash move
The 1-week chart showed DASH surging past the January 2023 high at $77.9. The $70 zone has been an important resistance in the past, as December 2024 showed. The price has zoomed past this level.
A weekly session close above $77.9 would be a firm sign of bullish strength. A drop below this resistance would signal doubt, and might even be the beginning of a bearish reversal.
The OBV made new highs, reflecting high buying pressure. To the north, the next resistance level was the swing high at $138.8. A drop toward $70 next week could offer a buying opportunity.
The RSI on the 4-hour chart showed extreme overbought conditions. It too noted strong buying pressure in recent days. The notable demand zones were at $60 and $72-78.
Instead of looking to buy DASH now, traders can wait for a pullback to these areas. However, they should be aware that such a pullback is not guaranteed.
The rising Open Interest and spot CVD showed increasing demand in both the spot and derivatives market. It was accompanied by traders trying to catch the top and enter short positions. This was evidenced by the falling Long/Short Accounts Ratio.
At the time of writing, CoinGlass data showed $3.38 million worth of short positions were liquidated in the past 24 hours. It overshadowed the $1.6 million long liquidations.
It showed the risks of trying to counter-trade the prevalent trend and narrative. Overall, traders can wait for a pullback. Long-term investors need not do anything but HODL.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
