DYDX reclaims resistance level
The price of DYDX has been steadily climbing within an ascending parallel channel since the start of 2023. The support and resistance trend lines of the channel have been tested multiple times, with the most recent test occurring in November (indicated by the red icon).
Following the test, the token experienced a decline that pushed it below a critical horizontal resistance area, which it had previously broken through. However, over the past two weeks, the token has been able to regain ground and is now recovering above this horizontal area.
Source: TradingView
The weekly momentum indicator, RSI, has remained above the horizontal resistance area as it rebounded from the 50 level.
Analyst Views
Cryptocurrency traders and analysts on Platform X are optimistic about the future prospects of DYDX. Trader Nihilus previously stated that the bullish trend would be confirmed once the price breaks through the resistance line:
2-hour chart DYDX/USDT. Source: X
Following this tweet, DYDX indeed experienced a bullish breakout and surpassed $3.
CryptoDude999 is also bullish on the breakout and retest.
Finally, KMvision suggests that the price will soon surpass the $4 mark.
DYDX Forecast: Will the Growth Continue?
Although the weekly timeframe does not definitively confirm the trend direction, the daily timeframe is signaling bullishness.
Price dynamics show that the token recently made a bullish breakout from a descending parallel channel that had been present on the chart since November 2023.
The daily RSI (green line) also broke through the resistance trend line and rose above the neutral level of 50. These indicators are generally considered to be signs of a bullish trend.
If the upward movement continues, DYDX could experience a 25% increase and reach the next resistance level at $3.90. This would bring the price close to the resistance line of the long-term channel.
Source: TradingView
On the other hand, a close below the resistance line of the channel would invalidate the bullish breakout. In that case, DYDX could experience a 25% drop and find immediate support at $2.40.
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