• Dusk price is currently being rejected at around $0.426 level.
  • The on-chain metric suggests DUSK growing network and dormant wallets are moving upwards again.
  • A daily candlestick closing below $0.286 would invalidate the bullish thesis.

Dusk (DUSK) price is currently being rejected at a key resistance level, which could lead to a short-term correction. But on-chain data show a spike in network growth and movement in inactive wallets, both of which, indicate that the bulls are preparing for their next move.

Dusk price provides an opportunity to accumulate

Dusk price broke above the 50-day Exponential Moving Average (EMA) at $0.355 on Friday as it rallied 23%, and is now facing resistance around $0.426. Due to this impulsive move, DUSK bulls could take a break, leading to a retracement, which could be a good buying opportunity for sidelined investors.

The potential pullback could find support at these levels.

  1. The 61.80% Fibonacci retracement level at $0.380.
  2. The 50-day EMA hovering at $0.364.
  3. The $0.338 to $0.315 range is indicated by the volume profile.  

Assuming Dusk price bounces off the $0.380 level, it could rally 20% to its previous high of $0.442. Supporting the aforementioned bounce are the Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators, which are firmly present above their respective mean values of 50 and 0. The momentum indicators are clearly signaling that the bullish momentum is in control. In case of an aggressive bullish outlook, DUSK could extend the rally by 33% to retest the April 8 bearish order block, extending from $0.493 to $0.514.

DUSK/USDT 1-day chart

DUSK/USDT 1-day chart

According to IntoTheBlock's In/Out of the Money Map (IOMAP), around 139 addresses have acquired 68.11 million DUSK tokens. These addresses bought DUSK tokens between $0.353 and $0.364, indicating a critical support zone, coinciding closely with the levels mentioned above. Hence, this area serves a good level to accumulate as these investors will likely increase their holdings if Dusk revisits their entry level.

Dusk IOMAP chart

Dusk IOMAP chart

On-chain data from IntoTheBlock adds a bullish view for DUSK. The number of active addresses increased dramatically from 50 on April 28 to 100 on May 28, implying a growing demand for the Dusk network, which adds further credence to the bullish outlook proposed above.

Dusk Daily Address chart

Dusk Daily Address chart

Santiment's Age Consumed index aligns with the bullish outlook from a technical perspective. The spikes in this index suggest dormant tokens (tokens stored in wallets for a long time) are in motion and can be used to spot short-term local tops or bottoms.

For DUSK, history shows that the spikes were followed by a rally in Dusk price. The most recent uptick on April 17 also forecasts a potential bullish move for DUSK.

Dusk Age Consumed chart

Dusk Age Consumed chart

Despite strong technical analysis and on-chain data, if the Dusk price produces a daily candlestick close below $0.286, it would invalidate the bullish thesis by producing a lower low on a higher timeframe. This development could see Dusk price fall 14% to the key support level of $0.248.


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

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP trades back below $0.50 on Wednesday as Ripple (XRP) proponents like attorney Bill Morgan have lashed out at the Securities and Exchange Commission (SEC) for what is being considered a “second free pass” for Ethereum. 

More Ripple News

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum (ETH) received a free pass from the US Securities and Exchange Commission (SEC) as the regulator decided to drop its investigation into ETH for allegedly selling the token as a security. 

More Ethereum News

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon price formed a bullish divergence on a momentum indicator, signaling a reversal. On-chain data shows MATIC’s capitulation event occurred between June 12 and 18.

More Polygon News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Bitcoin price action shows a bullish divergence on a momentum indicator, signaling a forthcoming bullish trend. Ethereum and Ripple are poised to mirror Bitcoin's trajectory, preparing to breach resistance levels and rally upwards in tandem.

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 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