During mid-June, DYDX’s price gained bullish momentum after the formation of support at $1.54 and created a July high at $2.311. The cryptocurrency price then retraced and formed support at $1.86. DYDX’s price has been stuck in a consolidation zone between $1.86 and $2.24.
The asset price has been consolidating since July. Currently, the DYDX price is hovering near the demand zone. If bulls push the price above $2.01, it might head toward the next resistance level of $2.13 and $2.24.
The previous candle closed bullish, and the current candle has broken the high of the previous candle but has turned bearish.
On the other hand, if the price can break the support level of $1.86, it might melt toward the next support level of $1.68. The market capitalization of dYdX increased by 0.53% to $350,902,948. The 24-hour trading volume has decreased by 30.04%. The price is down 93.12% from the all-time high of $27.78.
dYdX Integrates With Squid Router and Axelar Core
dYdX has been a pioneer in adopting next-generation blockchain architectures to support traders. The DYDX chain will integrate users from roll-ups, Ethereum L1, other app chains, and centralized exchanges to serve as many users as possible.
Squid and Axelar, an interoperability solution built for single-click onboarding from any blockchain environment, will be helping DYDX.
Will DYDX Price Continue Consolidating?
The cryptocurrency price has plunged below 20, 50, 100, and 200-day exponential moving averages, suggesting bearish momentum. The Chaikin money flow score has dropped below the 0 mark and currently trades at -0.20, indicating intense weakness and capital outflow from the market. CMF has been trading below the 0 mark since 7 September.
The relative strength index has also dropped below the 50 mark and trades at 43.87, suggesting a rise in sellers’ participation. The Bollinger bands have contracted, indicating low volatility in the market. Currently, the DYDX price is facing rejection from the 20-day SMA of Bollinger bands.
The long-short ratio is 0.91, with 47.81% longs and 52.19% shorts, suggesting a higher number of positions from the sellers’ side in the last 24 hours.
Conclusion
Price action data reveals that the DYDX price has struggled to rise above the $2 psychological level. The technical analysis paints a bearish picture and favors the selling side but traders should wait for the price to break the support level of $1.86.
Technical Levels
Major support: $1.86 and $1.68
Major resistance: $2.13 and $2.24
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/26/dydx-price-prediction-will-dydx-price-rise-above-2-in-september/