The recent performance of the privacy coin market has indeed been hot, especially DUSK's surge which has made many traders envious. However, amidst this upward trend, some warning signs are quietly emerging—it's important to be cautious that behind the surface prosperity, risks may be lurking.

Looking at on-chain data makes this clear. After DUSK hit a new high, the amount of tokens flowing to exchanges suddenly increased significantly, with daily inflows exceeding 6 million tokens at times, which is rare in recent times. What does this phenomenon indicate? Old investors and large holders are transferring their chips to exchanges, preparing to realize profits. Continuous selling pressure will eventually push prices down, and may even trigger a substantial correction.

From a technical perspective, the situation is also worth noting. DUSK's RSI on the daily and weekly charts has once exceeded 90, entering the overbought zone. Although this is not uncommon in strong bullish markets, it directly reflects that market participants' sentiment has reached an extreme level of greed. According to historical patterns, such extreme states are often corrected through rapid pullbacks or prolonged sideways movements, trapping late buyers.

Another aspect that cannot be ignored is the sector rotation pattern. The current privacy coin rally started with established leaders like XMR and DASH, and then funds flooded into smaller, more elastic projects like DUSK. This pattern has been validated multiple times in market cycles. When funds begin to withdraw from small-cap projects, the correction is often fierce.

Futures trading requires not only a desire for profit but also a respect for risk. At this point, defense may be more important than offense.