DYDX Strengthens on News That dYdX Exchange Delayed Unlocking Its Native Tokens. Technically, the price of the coin has already completed a correction and is now ready for a bullish reversal towards at least $2.50
Decentralized Crypto Exchange (DEX) dYdX Changes Plans to Unlock Its DYDX Native Governance Tokens for Investors and Community Members. Recall that earlier it was planned to unfreeze 150 million tokens on February 3. Now, according to an announcement posted on the platform blog on January 25, the first unlock date has been pushed back to Q4 2023.. According to the new schedule, the first 83 million coins will be unlocked on December 1, followed by a phased unlock of the remaining coins.
This blockage extension has been the current bullish factor for the price of the token, as it will spare it from an increase in the total number of coins in circulation next month.. Accordingly, DYDX immediately reacted to this news with a price jump of about 20%.
In addition, the price is supported by the general atmosphere of a thaw in the crypto market and a general increase in interest in DEX platforms after centralized exchanges discredited themselves in the eyes of investors last year after a series of scandals.. Accordingly, investors seeking to maintain control over their assets have become more likely to opt for decentralized platforms and alternative non-custodial solutions.
DYDX forms a bullish pattern
DYDX has formed a triple bottom near the 2022 low of $1.10 since June 2022, according to technical analysis.. This bullish pattern was also reinforced by bullish divergence signals on the weekly RSI (green line).
Divergence is very rare on such long timeframes and is often a precursor to a bullish reversal.. In addition, the RSI almost crossed the 50 mark, which is considered another sign of a bullish trend.
If the uptrend continues, the next resistance will come into play around $4.50. Price has not visited this area since April 2022.
Meanwhile, closing the week below $1.10 will cancel the bullish outlook for DYDX and set the coin on fresh all-time lows.
Source: TradingView DYDX reversal promises new highs
The daily chart confirms the results of the analysis of the weekly timeframe. There are two bullish signals here.
Firstly, the price movement from August 1 to December 30 resembles the completed correction structure of ABC.. In this case, a significant increase in price should be expected, and this corresponds to the signals of a bullish triple bottom.
Secondly, on January 1, the DYDX price made a bullish breakout of the descending resistance line, and 4 days later, the RSI moved above 50. It could also indicate the start of a bullish trend reversal.. After the breakout of this line, the token’s growth rate accelerated, and it recently reached a high of $2.20.
A break of the minor resistance in the $2.50 area could give the bulls additional momentum, and then the DYDX price could quickly head towards $4.50.
On the other hand, an absorption of the Jan. 18 low at $1.24 would reverse the bullish scenario and target sellers to all-time lows.
Source: Trading View
Thus, the most likely forecast for DYDX is to rise towards $2.50 and eventually break towards $4.50.. In the meantime, a drawdown under $1.24 will cancel this forecast and give reason to expect new historical lows.
Earlier, the editors of BeInCrypto said that in August last year, the dYdX platform, positioning itself as a decentralized exchange, began blocking accounts that were in contact with the Tornado Cash mixer.. A month later, dYdX was at the center of a controversy over a promotion that required selfies.
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