thecoinrepublic.com
- 1 DYDX price is currently trading at $2.072 while witnessing a gain of 0.63% during the intraday session.
- 2 DYDX price has surged above 20, 50 and 100-day EMAs.
- 3 The year-to-date return of dYdX is 87.76% while the three-month return is -2.77%.
DYDX price was in an uptrend, forming higher lows since mid-June 2023 after the formation of a support level at $1.545. The bullish rally helped the price in recovering the losses which occurred during the start of June 2023. However, the bullish move was halted as the price faced strong rejection above $2.30. The price turned bearish after the rejection and broke the uptrend.
After breaking the uptrend, the price formed support at the $1.91 level and gained bullish momentum to retest the trend line. The previous candle formed support at $2.04 and closed as a bullish candle. The current candle has broken the high of the previous candle but is facing strong rejection from $2.10.
If bears can push the price below the $2 psychological level, there is the possibility that the price might melt toward the next support level of $1.91. A candle needs to close below the $2 level for proper confirmation. On the other hand, if bulls take control and are successful in pushing the price above the $2.12 level, the price might retest the $2.19 level.
Network Activity Of DYDX
The total value locked of dYdX has also dropped significantly from $$971.30 Million (June 1, 2022) to $343.91 Million (August 8, 2023). If a TVL is low, it means that the project is in low demand and that consumers are not willing to invest capital in the project. It also indicates less available capital and lesser returns.
The DYDX community is also considering a proposal to shift the token from its current status as an ERC-20 token on Ethereum to its own cosmos SDK-based network.
Will dYdX Price Retest $2.19 Level?
The cryptocurrency price has climbed above 20, 50, and 100-day EMAs, indicating a rise in bullish momentum. The concern rises that this move might just be a retest of the trend line to fall further. Chaikin money flow (CMF) score has been hovering below the 0 mark since 19th July 2023 and currently trades at -0.14, indicating weakness in the market.
The relative strength index (RSI) has jumped above the 50 mark and is upward-sloping indicating the presence of bulls in the market. The Bollinger bands have contracted implying that there is a decrease in volatility.
The price has crossed the 20-day SMA of Bollinger bands and if it is successful in closing above it, it might head toward the upper band which resides near $2.19. The long/short ratio is 1.15 with 53.6% longs and 46.40% shorts indicating a higher position from the selling side in the last 24 hours.
Conclusion
Technical parameters suggest that there is an increase in the participation of bulls in the market but traders should wait for the price to close above the $2.12 level.
Technical Levels
- Major support: $1.91 and $1.745
- Major resistance: $2.19 and $2.565
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.