The recent drop in the price of Dusk ($DUSK K) at the end of January 2026 is mainly due to a natural process of financial "hangover" after an explosive rally, combined with geopolitical uncertainty factors that have affected the crypto market in general.
1. Profit-taking after a parabolic rally
Dusk had a historic start to 2026. Following the launch of its Mainnet on January 7th and announcements of partnerships with Chainlink, the price skyrocketed by more than 500% in just two weeks, reaching peaks close to $0.32.
Technical correction: It is common that after such vertical rises, investors who bought low decide to sell to secure their profits.
Overbought: The Relative Strength Index (RSI) reached extreme levels (91/100), indicating that the asset was "too expensive" in the short term and needed to cool down.
2. Macro Context: Uncertainty over Greenland and Tariffs
The global crypto market has suffered selling pressure in the last week. External factors have generated a sentiment of "risk aversion":
Geopolitical tensions: Recent statements about sovereignty in the Western Hemisphere (specifically related to Greenland and the U.S.) have destabilized traditional and digital financial markets.
Bitcoin drop: When $BTC loses strength or falls (as has happened recently by erasing part of its early year gains), altcoins like $DUSK k tend to suffer much deeper percentage drops due to their higher volatility.
3. Cascade liquidations
During the January rise, many traders opened "long" positions (betting it would rise further) using leverage. As the correction began, these positions were automatically closed (liquidations), forcing massive sales and accelerating the drop of recent days to the $0.15 - $0.18 zone.
What to expect now?
Despite the drop, the project's fundamentals seem solid:
Key support: Analysts are watching the $0.13 - $0.15 zone. If it manages to stay above, it could form a base for a new thrust.
Upcoming milestones: The launch of Dusk Pay and improvements to its DuskEVM are expected by the end of the first quarter, which could reactivate institutional interest.
