DASH surges 38, amid soaring demand for privacy coins

Key Takeaways

What triggered Dash’s recent price surge despite the broader crypto bear market? 

Rising demand for privacy coins and Dash’s new feature announcements fueled strong buying momentum.

What technical level must Dash maintain to sustain its bullish outlook? 

Dash needs a daily close above $74 to avoid retracing back to $61.

After facing rejection at $150, Dash [DASH]  faced intense bearish pressure, hitting a low of $61. However, the past day, Dash successfully defended this level and jumped to a local high of $98 before slightly retracing. 

At the time of writing, DASH was trading at $89.51, marking a 39.76% increase on the daily charts. Over the window, its volume surged 242% to $752 million, indicating steady capital flows. 

So, why is Dash up today?

Sector-wide breakout

Interestingly, aside from Dash, privacy-themed coins have also experienced a massive uptick. As Bitcoin [BTC] and the broader crypto market are in a bear market, investors have rotated significant capital into privacy coins. 

This is the case because of the rising concerns over online monitoring and strict regulations. As a result, coins that hide transactions have become increasingly attractive.

With increased blockchain tracking and reporting, users have sought ways to keep their activities private. 

Examining upgrades

Significantly, amid favorable market conditions, the Dash team announced another feature to increase adoption. 

The team reported that they were working on a new ‘killer’ feature, ‘Dash-to-Anything,’ that no other crypto has.  This feature aims to help Dash gain worldwide adoption as a form of money, thereby pivoting it into a globally applicable asset. 

In addition, the team revealed that it was working on a privacy-centered DashPay Wallet. The wallet will give users total control of their funds and activities without any privacy concerns. 

Demand rebounds across the market

Significantly, demand for privacy coins is soaring; these two potential upgrades were viewed positively by market players. 

As a result, market players, especially buyers, staged a strong comeback across the spot and futures markets. 

For starters, on the spot side, Dash recorded 1.5 million in Buy Volume compared to 1.2 million in sell Volume over the past 24 hours, at press time. 

Source: Coinalyze

As a result, the altcoin recorded a positive Buy Sell Delta of 300k tokens, a clear sign of increased spot accumulation. 

On the Futures side, Derivatives Volume surged 255.82% to $814.24 million, while Open Interest (OI) surged 57.08% to $85.21 million. 

Source: CoinGlass

Typically, when OI and Volume rise in tandem, it indicates increased participation and capital inflows into the futures market. With investors jumping into both the Spot and futures markets, this reflects strong demand.

How far can the momentum hold?

Dash rallied backed by several factors, including demand for privacy coins, upcoming upgrades, and rising demand across spot and futures markets.

As a result, the altcoin Stochastic RSI made a bullish crossover, rising to 13.84 at press time. A crossover here indicates a strengthening uptrend as buyers retake the market.

Source: TradingView

These conditions set the stage for further gains in Dash’s price. If momentum continues, Dash could reclaim the $100 level and potentially target the upper band of the Fibonacci Bollinger Band at $131.

However, to maintain this bullish outlook, the token must close above $74 on the daily chart. If it fails to do so, a pullback to $61 is likely.