In the past week, the price trend of DUSK can be described as 'fire and ice'. After experiencing an astonishing increase of over 115%, its price has retreated from the peak and is currently hovering around $0.16, with a decline of over 21% in the last 7 days. Such dramatic fluctuations have left investors in suspense: is this a healthy digestion of profits after a surge, or the beginning of a complete trend reversal? We will analyze from both bullish and bearish perspectives.
Bullish View: Strong Consolidation, Ready to Take Off?
Some analysts believe that the current decline is not an alarm. The basis for this view is that the previous massive increase was accompanied by a significant increase in open interest, which is interpreted as the entry of major funds rather than mere retail investors following the trend. After breaking through key positions, there has not been a waterfall decline, but rather a consolidation at relatively high levels, with buying support still appearing strong. This structure is viewed by some technical analysts as a 'flag consolidation', which is a continuation pattern within a trend. Some believe that as long as the price can hold above the key support range of $0.215-$0.225, there is still a possibility of testing $0.285 again or even higher targets.
Bearish signals: Technical indicators have fully weakened, and risks have increased.
However, the current market signals are pointing more towards the bears. Comprehensive technical analysis from authoritative platforms shows that DUSK currently has a 'strong sell' rating. Its 14-day Relative Strength Index (RSI) is in the weak zone of 30-40, and the MACD indicator remains below the zero line, confirming the current downward momentum. In terms of price action, yesterday (January 22) DUSK closed at $0.185 and today it has further declined, continuously breaking through several short-term moving average supports, with an intraday low of around $0.171, showing a clear weak pattern.
Key data and operational thoughts
· Market heat: The contract market heat for DUSK is much higher than the spot market, with a contract trading volume of up to $427 million in the past 24 hours, while the spot trading volume is only $32.45 million. This amplifies volatility, which also means higher risk.
· Liquidation risk: During the same period, over $1.1 million in DUSK contract positions were forcibly liquidated across the network, and high-leverage traders have suffered heavy losses under the current market conditions.
· Operational reference: For short-term traders, $0.17 is an important psychological and technical level. If it is breached, it may accelerate the decline. The initial resistance above is at $0.185 (near yesterday's closing price), with stronger resistance at the $0.20 round number. Whether holding long positions or intending to take advantage of a rebound, it is essential to set clear stop-losses, with reference levels below the recent strong support of $0.215, or adjusted according to one's own risk tolerance.