- Dusk price has retested and found support at the 50% price retracement level of $0.195, setting the stage for a potential rally.
- On-chain data supports a bullish outlook, with DUSK’s Exchange Flow Balance and Supply on Exchanges showing a decline.
- A daily candlestick close below $0.190 would negate the bullish perspective.
Dusk (DUSK), a Layer 1 blockchain protocol integrating classic finance and real-world assets (RWA) on-chain, has reversed its initial weekly losses and reclaimed the $0.210 level, up 5% on Wednesday. The coin could see an additional 17% gain following a recent retest and support found around a key level. On-chain indicators, including a decrease in Exchange Flow Balance and Supply on Exchanges, suggest the potential for an upcoming rally.
Dusk Price Shows Potential for a Rally
Dusk experienced selling pressure early in the week but found support at the 50% price retracement level of $0.195 (measured from early August lows to early September highs). This level aligns closely with the daily support zone at $0.190, marking it as a significant support area. As of Wednesday, Dusk is trading 5% higher, just above $0.212.
Should the $0.190 level remain robust as support, DUSK could rally 17% to test its next resistance level at $0.248. The Relative Strength Index (RSI) is at its neutral level of 50, and the Awesome Oscillator (AO) is around zero, indicating a lack of strong momentum from either bulls or bears. For the bullish trend to continue, both indicators need to stay above their neutral levels, suggesting a potential recovery rally ahead.
Analysis of on-chain data indicates a bullish outlook for Dusk’s price. According to IntoTheBlock’s In/Out of the Money Map (IOMAP), approximately 74 addresses acquired 53.23 million DUSK tokens at an average price of $0.190. These addresses purchased the tokens between $0.188 and $0.194, highlighting this range as a crucial support zone.
The technical analysis confirms the importance of the $0.190 support level, aligning with the IOMAP data and marking it as a significant reversal point.
Santiment’s Exchange Flow Balance metric also supports the bullish technical outlook. This metric tracks the net flow of tokens into and out of exchanges. A positive spike indicates more tokens are entering exchanges, signaling potential selling pressure, while a negative spike shows a higher number of tokens leaving, suggesting reduced selling activity.
For Dusk, the Exchange Flow Balance metric dropped sharply from 41,231 on Monday to -455,170 on Tuesday. This negative shift indicates that more tokens are being withdrawn from exchanges, reducing the likelihood of selling. This also resulted in a 1% decrease in Supply on Exchanges, reflecting increased investor confidence in the Dusk network.
Despite the positive outlook from technical analysis and on-chain metrics, a daily candlestick close below $0.190 would invalidate the bullish thesis. This would indicate a formation of a lower low on the daily timeframe, potentially leading to a 12% decline in Dusk’s price and a retest of the August 16 low at $0.166.
