DYDX Price Analysis: Is the Token heading for a retracement?

The token is trading above its key Moving Averages.
The pair of DYDX/USDT is trading at the price level of $3.040 with a decrease of -3.77% in the past 24 hours.

The DYDX token was trading in a consolidation zone for a long period of time on the daily time frame. Recently, the token has broken the consolidation zone upward with strong bullish candle and high volume.

DYDX token on the daily chart

The token has gained traction and bulls are driving up the price of the token. As we can see on the daily chart, the DYDX token is currently trading at $3.040 with a loss of -3.77% in the past 24 hours. The token has crossed and sustained above its key Moving Averages which are 50 EMA and 200 EMA.( Red line is 50 EMA and the blue line is 200 EMA).Let’s see if the bulls can continue the bullish momentum and hit new highs.

Relative Strength Index: The RSI curve of the asset is currently trading at 66.74 and is declining in value as the token price has decreased in the past few days. After a strong up move the token is heading for a retracement and has led the value of the RSI curve to drop and cross the 14 SMA downward. If the bulls are able to bounce back after taking a retracement then we can see the value of the RSI curve on rise again.

Analyst view & Expectations

When a token gives a breakout and after that goes for a retracement then the breakout is often said to be a successful breakout. Investors who missed the entry at the time of the breakout have a chance to buy when the token takes support at the breakout level and shows signs of bullish momentum. Whereas,on the other hand the intraday traders have a good opportunity to go short and aim for $2.534 and book profits as per their risk to reward ratio.

According to our current DYDX price forecast, the value of DYDX will climb by 20.37% to $ 3.69 by the next few days. Our technical indicators indicate that the current sentiment is Neutral, with the Fear & Greed Index reading 58. (Greed). Over the previous 30 days, DYDX had 18/30 (60%) green days and 34.00% price volatility. According to our DYDX forecast, now is not a good time to buy DYDX.

Technical Levels

Major support: $2.840 & $2.534

Major resistance: $3.250 & $3.893

Conclusion

The token has entered a short term uptrend and bulls are driving up the price of the token. It remains to be seen if the token can bounce back after taking a retracement from the breakout level.

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