Dash Surges 49% in a Day – Privacy Coin Craze Grips the Market

The demand for privacy tokens is rising, driven by ZCash's recent breakout past long-term resistance, prompting investors to seek alternatives like Dash.
It may be wise to hold off on buying or going long for now; traders should look for a pullback toward the $70-$78 range, though this may or may not occur. Meanwhile, investors can hold their positions.
Dash [DASH] has increased by 49.7% in the last 24 hours, breaking through the $77.9 resistance level established earlier in 2023. This coincided with a spike in ZCash [ZEC], which hit $449.8—its peak since 2018.

Key Takeaways

The demand for privacy tokens is rising, driven by ZCash's recent breakout past long-term resistance, prompting investors to seek alternatives like Dash.
It may be wise to hold off on buying or going long for now; traders should look for a pullback toward the $70-$78 range, though this may or may not occur. Meanwhile, investors can hold their positions.
Dash [DASH] has increased by 49.7% in the last 24 hours, breaking through the $77.9 resistance level established earlier in 2023. This coincided with a spike in ZCash [ZEC], which hit $449.8—its peak since 2018.

The increased trading volume over the last month, coupled with the growing demand for privacy-focused cryptocurrencies, remains robust. Although Dash may be short-term overbought, it maintains a bullish outlook.

The momentum behind the privacy coin narrative is likely to persist, supported by both ZEC and DASH reaching multi-year highs, an indication of solid bullish sentiment.

Dash soars 49% in a day as privacy coin mania captures the market

Analyzing Dash's Next Steps

Dash 1-week Chart Source: DASH/USDT on TradingView

The weekly chart indicates that DASH has surged above the January 2023 high of $77.9. The $70 mark has been significant in the past, highlighted by price action in December 2024, and DASH has now surpassed this threshold.

Closing a weekly session above $77.9 would solidify the bullish trend. If the price dips below this level, it could suggest uncertainty and potentially trigger a bearish reversal.

The On-Balance Volume (OBV) has achieved new highs, indicating that there is considerable buying pressure. The next resistance level to watch is the swing high at $138.8. Should a pullback toward $70 occur next week, it could create a buying opportunity.

Dash 4-hour Chart Source: DASH/USDT on TradingView

The Relative Strength Index (RSI) on the 4-hour chart indicates extreme overbought status but also reflects strong recent buying activity. Key demand zones are identified around $60 and $72-$78.

Rather than purchasing DASH immediately, traders might consider waiting for a price pullback to these levels, although such a correction is not guaranteed.

Dash Coinalyze Source: Coinalyze

The increase in Open Interest and spot Cumulative Volume Delta (CVD) reflects rising demand in both spot and derivatives markets. This surge has been accompanied by traders attempting to capitalize on potential downward movements, as evidenced by a decline in the Long/Short Accounts Ratio.

Currently, CoinGlass data reveals that $3.38 million in short positions were liquidated within the last 24 hours, significantly surpassing the $1.6 million liquidated in long positions. This trend poses risks for those trying to go against the prevailing market trend. Ultimately, traders should consider waiting for a pullback, while long-term investors might remain steady and continue to HODL.

Disclaimer: The information presented here does not constitute financial, investment, trading, or other types of advice, and represents solely the author's opinion.