After the airdrop, dYdX had an amazing run last year. Is it better to invest in DYDX now or should you consider other options? Read more to find out!
After DYDX was airdropped to early adopters last September, the price made a 150% move upward, finally topping out around $27. Since its top in October, the token has been on a steady downtrend. However, the fact that the token belongs to a dominant decentralized exchange on Ethereum shows that its fundamentals are bullish. Bitcoin (BTC) has also been on a steady downtrend, although for a short term. So caution is advised if you are looking to long. Let’s hop onto the DYDX charts to observe the price movement.
DYDXUSDT in a 1 Day Chart
DYDX has been in a consistent downtrend for more than three months. However, sellers now seem to be losing momentum. As you can see the down moves are becoming shallower, whilst also providing positive divergences on the RSI. If the price can have a positive close on the daily chart, DYDX may experience a bounce; previous positive divergences returned more than 40% to investors. At $8.2, a major sell-off can be observed with a high volume on the down move. With funding at -0.0013, we may see a short squeeze in the coming days if the positive divergence takes place.
DYDXUSDT on a 3-Day Chart
Since there is a small price history available for DYDX, the 3-day chart is the best for analysis when it comes to higher time frame macro trends. As can be seen, it shows a similar situation as the 1-day chart, where the price has been stuck in a clear downtrend. However, there is also a positive RSI divergence on the 3-day chart. If the price closes positively in the next three days, it will be a sign of confirmation. The token will therefore see a move to over $8.20 upon confirmation. However, if it does move up, it would be smart to close the position as there is a local resistance level. If the price flips this resistance, the supply level at $10 dollars would be targeted. Nevertheless, this is entirely dependent on what BTC does. Let's see how DYDXBTC looks as this can give us a gauge on how the price will perform in the coming days.
DYDXBTC in a 1-Day Chart
As you can see DYDXBTC was in a clear downtrend, with a downward move of 75% from the highs. However, the price is now at an important support level (0.000153) and has broken the bear market structure. It, therefore, makes sense to take long positions. There is a clear supply zone above, yet if the price maintains its bullish market structure, it is likely that 0.00025 will be tested again. If bulls can flip this level, then they can target the higher levels. With a small price history available above the 0.00025 level, a flip may enable DYDX to outperform BTC in the foreseeable future.
DYDXBTC in a 3-Day Chart
It is easier to identify the clear range between 23,906 and 15,264 sats on the DYDXBTC 3D chart. Right now, the price is at support and in an uptrend, therefore, it makes sense for DYDX to outperform BTC. However, if the price starts to break down from 15,264 sats, we may see DYDXBTC reaching new lows. Caution is, therefore, advised, especially with BTC looking weak, the price may easily get dragged down.
DYDXETH in a 1 Day Chart
It is always good to compare DYDX to the blockchain it is built on, because the native token of that blockchain usually has a higher market cap. Therefore, it is wise to make sure that the higher beta altcoin runs faster than its blockchain counterpart, which in this case is Ethereum (ETH). As you can see on the DYDXETH 1-day chart, the price is forming higher highs and higher lows, maintaining its bullish market structure. It is clearly in a range and any movement down to 0.002 ETH should be seen as a buying opportunity targeting the supply zone at around 0.0032 ETH. If the price flips this level, DYDX will likely outperform ETH and make a move of more than 35%.
Summary
- Current Bitcoin price action has been extremely volatile, therefore, caution is advised for longing altcoins.
- DYDX has been in a consistent downtrend for more than three months. However, sellers now seem to be losing momentum. As can be seen on the 1-day and 3-day charts, there is a positive divergence.
- There is an obvious range between 23,906 and 15,264 sats on the DYDXBTC chart. Price is at support, therefore, we can infer that DYDX will outperform BTC in the foreseeable future.
- On the DYDXETH 1-day chart, the price is forming higher highs and higher lows maintaining its bullish market structure as it looks to have bottomed out.
- The price is clearly in a range and any movement down to 0.002 should be seen as a buying opportunity targeting 0.0032.
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