Will Mainnet Launch Turn DYDX Bullish?

DYDX crypto price entered into a bullish trend during the middle of June, rising from the support level of $1.55. The cryptocurrency price attempted several times to close above $2.30 but was unsuccessful.

At the beginning of September, DYDX’s price faced strong rejection from $2.23 and retraced to significant support of $1.86. The asset price regained bullish momentum for retesting the resistance level of $2.23 but the move was halted at $2.01.

The DYDX’s price has been forming a bearish candle for the last two days. The previous candle rose above $2.01 but could not close above it due to the strong presence of bears. The current candle broke the previous candle’s low and is headed toward the minor resistance of $1.91.

If bears push the price below the support level of $1.91, it might melt toward the recent support of $1.86. On the other hand, if the price can form a support at $1.91, it might retest the $2.01 level. Additionally, if bears can shatter the support level of $1.86, the price might fill the lower wick of the 17th August candle and melt towards $1.70.

Token Unlocks and MainNet Launch of DYDX

Token Unlock of DYDX is scheduled for 3rd October. Around 2.16 Million tokens of DYDX will be unlocked, which is 1.23% of the circulating supply, worth $4.16 Million. Until now, 176.28 Million tokens of DYDX have been unlocked, and 584.14 Million tokens remain locked.

The mainnet of DYDX is anticipated to launch in October. dYdX is on an odyssey – moving from a Layer-2 network in the Ethereum ecosystem onto its blockchain built using Cosmos technology. The test network was announced in July, and after some delays, the leading network (Mainnet) launch is now expected in October.

Will DYDX Price Stay Above $1.86?

The cryptocurrency price has plunged below 20,50,100, and 200-day exponential moving averages, indicating bearish momentum. The Chaikin money flow score has dropped below the 0 mark and currently trades at -0.19, suggesting weakness and capital outflow from the market.

The relative strength index trades at 44.68, implying a rise in sellers’ involvement in the market. The long-short ratio is 0.86, with 46.42% longs and 53.58% shorts, suggesting a higher position of sellers in the last 24 hours.

Conclusion

Overall, the market structure and price action of DYDX are still bearish. Technical parameters favor the selling side, and Bitcoin, the market leader, is also facing a sell-off, which has affected all the altcoins.

Technical Levels

Major support: $1.86 and $1.705

Major resistance: $2.01 and $2.23

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.