Will whales accumulating $14 million worth of DASH help the price recover?

Dash (DASH) has recorded the sharpest drop in the market over the past 24 hours, with its price falling 17% to $53.

According to market analysis, the main reason for this downward trend comes from traders executing futures contracts, after DASH just experienced an impressive 50% growth streak last month. Nevertheless, capital inflows from retail investors in the spot market continue to pour in, indicating that interest remains strong.

Why did DASH plunge so sharply?

DASH—a cryptocurrency focused on privacy—saw its price drop at a rather unique time, as the entire privacy sector is booming with growth rates of up to 85%.

This decline is primarily driven by capital shifting in the derivatives market. As of now, about $66.84 million has been traded, mostly by sellers.

This situation is further confirmed as the funding rate has turned negative, meaning that sellers have to pay fees to maintain their positions in both the spot and futures markets.

NguSource: Coinglass Notably, the open interest–weighted funding rate has also reversed to negative, confirming that sellers are dominating the price action of DASH.

If the downward pressure persists, DASH is likely to fall deeper into lower price zones, increasing the risk of mass liquidation of open positions.

Where will DASH go next?

According to Coinphoton, DASH may continue to correct downward on the chart. If selling pressure continues to mount, DASH could slip into the lower demand zone, ranging from $42.15 to $51.28—which was the accumulation area for 16 days before the recent price breakout.

NguSource: TradingView A noteworthy point is the Money Flow Index (MFI)—a measure of capital inflows and outflows in the market—which is showing signs that liquidity may return. The MFI has begun to rise, reaching 39.70, but remains below the bullish threshold of 50. Therefore, a recovery in DASH will only be confirmed if this index surpasses that key level.

Strong growth in spot demand

Despite the downward trend, spot investors continue to show strong interest in DASH. Just this week, they have spent over $14 million to buy DASH from the market.

In the past 24 hours alone, investors have accumulated an additional $2.55 million worth of DASH.

NguSource: Coinglass Strong buying amid the market correction shows that many investors view this price drop as an opportunity to increase their long positions.

If this trend continues, DASH could recover from its current support zone and gradually move up to higher levels on the chart.

Ong Giao