After the asset scale of Zcash, a subsidiary of Grayscale, exceeded $400 million, the privacy coin sector strengthened once again. Driven by the sector's sentiment, DASH rose to $54.1 on Thursday, and the market began to pay attention to whether funds will continue to spread from ZEC to privacy and payment tokens with smaller market values.
Zcash Fund drives the sentiment of the sector
Reports show that the ZCSH of Grayscale was listed on NYSE Arca on August 25, with an initial asset size of just over $300 million. Since then, as the price of ZEC exceeded $1,000, the fund's assets have grown to over $400 million, and tracking data indicates that it holds nearly 429,000 ZEC.
In privacy coin trading, Zcash and Dash are often classified into the same sector. After ZEC strengthens, some of the trading funds will shift to related tokens with smaller volumes, and DASH will therefore benefit from this. However, sector linkage does not necessarily mean that the upward trend will continue; it still depends on whether DASH's own buying power keeps up in the future.
DASH Pay attention to the $52 level.
DASH rose to $54.1 on the same day, and the short-term trend continues to be strong. The article mentions that if the price remains above $52, the market will further focus on the $72 level; if this level is lost, the risk of falling back to around $40 will also increase.
From a technical perspective, the formation of a golden cross between the 50-day and 200-day EMA indicators is seen as a signal of improving trend. However, there is still pressure in the short term; the RSI indicator has risen to 75.91, indicating that prices are in a relatively overheated range. Subsequently, the market may first enter a consolidation phase or experience a temporary decline.
Increase in capital flow and transaction activity
Apart from RSI, the other indicators mentioned in the text still tend to be strong. The bar chart of AO has not yet shown a clear weakening, and MACD remains above the zero axis, indicating that the current momentum has not been significantly damaged. CMF also stays above the zero axis, reflecting that funds are still flowing in.
Another signal that has caught the market's attention is the increase in on-chain transaction activity. Reports mention that the number of daily transactions for DASH is on the rise. Compared to a simple increase in price, a resurgence in transaction activity usually reflects whether the network usage and market participation have improved simultaneously.
Overall, this round of DASH upward movement is mainly driven by two factors: one is the sector sentiment brought about by the expansion of Zcash funds, and the other is the improvement in DASH's technical aspects and trading activity. Whether the level around $52 can be maintained will still be the key to determining whether this upward trend will continue.
