DASH faces downside risk as long-standing coins "wake up"

Dash (DASH) is weakening, and this time it seems to be more than just a normal correction. The market is becoming more subdued than expected during a healthy downtrend.

Notably, some coins that have been “sleeping” for many years are suddenly starting to move again, a phenomenon that typically only occurs during sensitive moments in previous cycles.

Are the trend and market sentiment towards DASH changing?

DASH gradually fading

Just one week after recording a remarkable growth of over 100%, DASH quickly retreated to the $69 zone, unable to hold its recent highs. On the daily chart, DASH remains above long-term moving averages, but the bullish momentum has shown signs of weakening.

The RSI indicator, from overbought conditions, has returned close to neutral levels, while the MACD histogram is also fading. The likelihood of DASH continuing to rise is clearly diminishing.

Source: TradingView The open interest (OI) remains stable around $90 million, indicating traders are more inclined to close positions rather than open new orders. At the same time, the Funding Rate stays negative, meaning the short sellers are still willing to pay fees to maintain their positions.

Source: Coinalyze Data shows that market participation is significantly declining. DASH is gradually losing community interest, and the sharp rise followed by a deep drop in the past week is a concerning signal.

Long-standing coins start to “wake up”

Last November, the Dash CDD Multiple index saw a sudden spike, reflecting that coins inactive for many years are suddenly being moved.

According to Joao Wedson, CEO of Alphractal, such surges often occur when the market hits a peak, marking the beginning of prolonged distribution phases.

Source: XM Although this activity has decreased, the warning remains valid, as long-term investors typically act only at the end of a cycle.

The number of coins lost has stabilized after years of growth, indicating that the previously “forgotten” supply is gradually returning to the market.

Source: X Wedson also emphasized on X that this process could last from a few weeks to several months. Considering the decline in interest levels, the downside risk for DASH becomes even more apparent.

Mr. Teacher