Is $3.2 the Next Resistance?
Today, the price of Bitcoin has fallen significantly from the $100,000 level, while the altcoin market remains strong. Among the standout performers, dYdX surged more than 35% to reach resistance at $2.50. Driven by increased demand and good news, analysts are optimistic that dYdX price may soon break through the $3.2 resistance level.
dYdX surges after Trump decision
dYdX’s value has risen 35% in the past 24 hours, reaching a seven-month peak of $2.48 on December 6, which pushed its market capitalization to more than $1.6 billion. Data from Coinglass shows that a total of approximately $3.9 million was liquidated on dYdX prices, with buyers liquidating positions worth approximately $2.2 million.
DYDX’s recent surge was largely triggered by the news that President-elect Donald Trump had appointed David O. Sachs as White House director of artificial intelligence and cryptocurrency.
Of growing interest is Sacks’ role in Craft Ventures, a venture capital firm that invested heavily in DYDX. The connection between the newly appointed cryptocurrency regulator and the coin has sparked strong bullish sentiment among investors, driving DYDX’s latest gains.
Another factor that could drive altcoins higher is the growing interest from whale investors. Data from IntoTheBlock shows that the net flow of DYDX whale holders went from a net outflow of $766,000 worth of DYDX tokens on December 2 to a net inflow of more than $2.2 billion in DYDX tokens on Wednesday, December 4.
When whales start accumulating altcoins, it often triggers fear of missing out (FOMO) among retail investors, who rush to buy altcoins in hopes of making a profit. Additionally, data from DeFiLlama shows that the total value locked in DeFi protocols has increased from approximately $226 million in November to more than $388 million currently.
However, as the price encountered resistance around $2.5, large trading volumes fell from a peak of $15.7 million to a recent low of $3.2 million. This shows that whales are continuing to retreat amid increased volatility on the price chart.
What’s next for dYdX price?
dYdX price broke out of its immediate resistance channel, leading to a rise towards $2.5. However, buyers failed to maintain momentum near this level, causing the price to drop to the 23.6% Fibonacci level. At the time of writing, dYdX price is trading at $2.3, having surged over 21% in the past 24 hours.
The moving averages are uptrending and the RSI is approaching overbought territory indicating that the path of least resistance is to the upside. The DYDX/USDT pair could climb to $2.5 and possibly even $3.2, where heavy selling pressure is expected.
This bullish scenario could become invalid in the short term if the price declines and falls below the 20-day EMA at $1.9. Such a decline would indicate a lack of appetite from buyers for higher prices and could lead to a drop to the 50-day moving average of $1.3.
