• Dusk price faces resistance at the daily bearish order block area extending from $0.503 to $0.515.
  • On-chain data shows DUSK’s rising Social Dominance and falling Development Activity.
  • A daily candlestick close above $0.515 would invalidate the bearish thesis.

Dusk (DUSK) encountered resistance at the daily bearish order block area, extending from $0.503 to $0.515 on Monday, potentially indicating a price correction. On-chain analysis hints at the formation of the local peak for DUSK as Development Activity declines while Social Dominance rises, suggesting a period of consolidation or potential reversal.

Dusk price likely to correct

Dusk price currently faces resistance at the April 8 bearish order block area extending from $0.503 to $0.515. A bearish order block is an area where market participants, such as institutional traders, have placed huge sell orders.

If this resistance holds, Dusk could reject further to find support at $0.425, the 61.8% Fibonacci retracement level drawn from the swing low of $0.280 on May 15 to the swing high of $0.515 on June 10. 

If the overall crypto market outlook fails to improve, DUSK could extend the crash to its next support level at $0.370, the 38.20% Fibonacci retracement level, constituting an additional 13% loss

DUSK/USDT 1-day chart

DUSK/USDT 1-day chart

Santiment’s Development Activity metric tracks the frequency of project development events recorded in the public GitHub repository over time.

A rise in this metric usually suggests continuous endeavors to uphold, innovate, and improve the protocol, which is generally seen as favorable by investors and stakeholders. Conversely, a decline in the metric might raise apprehensions about the project's endurance, capacity for innovation, and engagement with the community in the foreseeable future.

As in DUSK’s case, the index is falling from 49.98 on May 20 to 38.19 on June 11. The 24% fall in  Dusk's Developing Activity signals concerns regarding the project's sustainability, innovation capacity, and community involvement over the long term, which adds further credence to the bearish outlook.

DUSK Development Activity chart

DUSK Development Activity chart

Santiment’s Social Dominance metric shows the coin's share or % of mentions on crypto social media compared to top projects. A spike in this metric during rallies often signals local tops, particularly with mid and low-capitalization coins. Increased chatter during breakouts is typically pump-related, indicating a risky period for position entry or retention.

As in DUSK’s case, a spike has been seen on Tuesday, signaling the formation of a local top in DUSK price, adding credence to the bearish outlook.

DUSK Social Dominance chart

DUSK Social Dominance chart

Despite strong technical analysis and on-chain data, if DUSK’s daily candlestick closes above $0.515  and establishes a higher high on the daily timeframe, it may signal a shift in market dynamics that favors bullish sentiment. Such a change could nullify the bearish outlook, leading to a 7% rally in the Dusk price to the previous resistance level of $0.553.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP