- DUSK/USDT forms a descending channel with seller exhaustion near key support.
- Spot CVD shows stabilization, hinting at accumulation and potential upside reaction.
- Futures CVD and funding suggest leveraged shorts are exposed to risk in the bounce.
The price of DUSK trades at $0.1125 with a 24-hour volume of $22.34 million. The token gained 7.66% over the last day but remains down 26.36% on the week, reflecting short-term recovery within a broader corrective phase in current market conditions.
Price Action and Market Structure
The DUSK/USDT chart reveals a clear descending channel following an impulsive rally. Price peaked sharply before entering a corrective phase, forming lower highs and lower lows.
This structured decline demonstrates controlled selling rather than panic. Currently, the price bounced off the lower channel support, a zone tested multiple times before.
The recent candlestick formation near this area shows tighter bodies and smaller wicks. Such compression often represents accumulation rather than continuation of the downtrend.
The horizontal level around 0.172–0.175 has acted as prior support and resistance. Price remains below this high-value node, making upward moves likely mean-reversion rather than trend reversals.
Spot and Futures CVD Analysis
Aggregated spot CVD provides insight into real buying and selling activity. The recent trend shows a slight flattening and uptick near the lows, despite the price reaching new minima.
This indicates selling pressure is slowing, and stronger hands may be absorbing supply. Futures CVD continues to register negative values, confirming leveraged-driven selling dominates the market.
When spot stabilizes while futures selling persists, the market becomes prone to short squeezes. Even minor bullish momentum can trigger liquidation among leveraged shorts.
Monitoring these CVD metrics suggests asymmetric risk favoring upside in the short term. Traders can interpret stabilizing spot CVD as a signal that the market may react strongly if buyers step in.
Funding Rate and Market Sentiment
The funding rate for DUSK/USDT remains deeply negative, indicating extreme bearish positioning. Shorts consistently pay longs, reflecting crowded sentiment among leveraged traders.
Historical patterns show similar conditions often precede sharp short-term rallies. Prolonged negative funding during price compression suggests downside continuation is increasingly difficult.
Market participants holding short positions are vulnerable to liquidation if momentum shifts. The interplay between funding rate and CVD metrics confirms that sellers are near exhaustion.
Traders can use the funding rate alongside channel analysis to gauge risk-reward. A bounce from the lower channel, combined with stabilizing spot CVD and extreme negative funding, points to a potential high-reward trade.
Monitoring momentum and volume remains essential before entering positions.
