DYDX Price Prediction: Can A Strong Bounce Lead DYDX Back To $3.5?

• DYDX/USDT gained 17.26% in the last week
• DYDX/USDT has a Year-To-Date Performance of 80.14%

DYDX is trading at $1.99. The price is up 3.70% in the last 24H. The 24H trading volume saw a fall of 15.01%. The Total Market Cap is $310,802,891.

DYDX appears to be in a mid-term accumulation phase. The market is slightly bearish at present. The prices started to fall after a bullish rally of almost 200% which started with the year. DYDX rose to $3.5 which was the peak of this rally. The market made multiple attempts to breach the resistance but has been trapped below $3.20.

A Swift recovery from swing low.

According to the daily chart, the minor downtrend is due to the formation of a lower low. Also, DYDX is trading 9.5% below the 200 EMA. The recent swing low broke the support of $1.756 and got a bounce from $1.366. The recovery was a solid 45% in just 17 days. Also the RSI on the daily timeframe is back above 50.

The prices also managed to flip the 9 and 15 EMA while moving steadily toward the 200 EMA. The minor uptrend can face resistance at the $2.34 price. With the formation of a lower low, concerns of a further downtrend have been rising in the market. On the contrary, the strong bounce brings back some confidence.

The 4h Chart Shows a short term uptrend

According to the 4H, the price action shows a short-term uptrend, while the price is bouncing off a support trendline. The price is creating a higher high and also managed to flip the 200 EMA on The 4H. DYDX can continue the bullish momentum as long the price trades above the trendline.

A confirmed change of trend will happen once the prices break the immediate resistance. Such a move will help the market to recover to the Daily resistance level of $3.50. However, a breakdown of the trendline may collapse the market by 25% and the prices will come down to test the lower support zones.

RSI: The RSI indicator is currently at 61.63 on the 4H. This indicates strong bullish to sideways conditions.

MACD: The MACD indicator has made a bearish crossover but the indicator is above 0.

The MACD is moving closer to the signal line which indicates a sideways momentum.

200 EMA: As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average) which acts as a significant support. This is a clear indication of an uptrend where the buyers are in control and for a trend reversal, the price must break and trade below the 200 EMA.

Conclusion:

DYDX appears to be caught up in a minor downtrend. The prices created a lower low raising the concerns of a more bearish scenario. The recent bounce from the swing low is reviving the hopes for the bulls. Price is trading near the demand zones and the possibility of buying is high as long as the demand level stays intact. A breach can signal a downtrend. The market is volatile and investors must follow precautionary measures to minimize losses.

Technical levels

Support Levels: $1.756 – Support 1

     $1.366 – Support 2

Current Price: $1.99

Resistance Levels: $2.340- Resistance 1

          $3.201- Resistance 2

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.