DUSK's recent performance illustrates a common issue: tokens that experience sharp short-term surges often face equally fierce declines afterward. The recent pullback from the high of 0.29, combined with the current negative funding rate signaling a short-selling trend, indeed warrants caution.

Why is the volatility so high? Historical data shows that rapid rises and falls are often two sides of the same coin. When market sentiment overheats and funds flood in to push prices higher, a quick profit-taking or risk aversion can trigger a swift sell-off. DUSK's current situation is just that—its rapid initial surge has exhausted some expectations, and now it needs time and sideways movement to digest these profits.

Key areas to watch:

**Can the price structure hold steady?** The 0.28 level is both a previous support and a recent critical resistance. If the price consolidates around this area and forms a clear bottom pattern, it suggests selling pressure may be gradually easing. Otherwise, risks remain.

**On-chain fund movements:** Monitoring inflow and outflow data from exchanges is crucial. If large amounts of tokens are no longer continuously entering exchanges, it indicates that panic selling might be nearing an end. Conversely, if funds keep flowing into exchanges in preparation for a sell-off, patience is needed.

**Fundamental developments:** Keep an eye on the progress of DuskEVM mainnet. Genuine long-term support often comes from project milestones rather than short-term hype. If there are substantial ecosystem updates, they could provide new support for the price.