OnOctober19DYDXpricewas$0.96.However,inthelast24hours,thenativetokenofthedecentralizedprotocolhasjumpedby30%.
Asaresult,DYDXisoneofthebest-performingaltcoinstoday,onlybehindApeCoin(APE)outofthetop100.Whyisthishappening,andwhatisnextforthetoken?
dYdXVolumeRisesAheadofMajorEvent
Asofthiswriting,DYDX’spriceis$1.22.Thisiscomingaheadoftheproject’sconference,whichisscheduledtostarttomorrow,October21,inDubai,suggestingthatthebroadermarketisenthusiasticabouttheupcomingevent.
Besidesthis,thealtcoin’svolumehassurgedto$210.53million.Volumeisakeyindicatorasitmeasurestherelativeimportanceofamarketmove.Apricemovewithahighvolumeisconsideredmoresignificant,whileamovewithalowervolumeisgenerallyviewedaslessimpactful.
ForDYDX,thesurgeinvolumecouldbelinkedtotheconferenceandtheproject’slaunchoftheTrumpElectionPerpetualTradingMarket.Forcontext,thedecentralizedplatformallowsuserstoleveragepositionsinaperpetualtradingmarketlinkedtoelectionoutcomes.
Readmore:UnderstandingdYdX:AGuidetotheDecentralizedPerpetualExchange
DYDXVolume.Source:Santiment
Ifthevolumecontinuestoincreasewiththeprice,thenDYDX’svaluemightcontinueitsupwardtrend.Ifnot,thepriceincreasewillslowdown.
Furthermore,thisdevelopmenthasalsoaffectedsocialdominance,whichtracksthelevelofdiscussionsurroundingthetoken.Whensocialdominancerisesalongwiththeprice,itcansignalgrowingdemandforthetoken.
Conversely,adropinsocialdominanceindicatesthatdiscussionsaroundDYDXhavesurpassedthoseofothertop100cryptocurrencies.Giventhecurrenttrend,thealtcoincouldclimbabove$1.22inthecomingdays.
DYDXSocialDominance.Source:Santiment
DYDXPricePrediction:HigherHighsNext
Alookatthe4-hourDYDX/USDchartrevealsthattheAwesomeOscillator(AO),whichwaspreviouslyinthenegative,hasnowshiftedtothepositivezone,signalingbullishmomentumforthetoken.
ThismomentumenabledDYDX’spricetobounceoffits$0.94supportlevel.TheChaikinMoneyFlow(CMF)hasalsoshownanupwardtrend,indicatingthataccumulationaroundthealtcoinisincreasing.Ifbuyingpressurecontinuestorise,DYDXcouldpotentiallyclimbtothepeakofthewickat$1.35.
Readmore:Top11DeFiProtocolsToKeepanEyeonin2024
DYDXPriceAnalysis.Source:TradingView
However,thetoken’svaluemightdropifdistributionoutpacesaccumulation.Intheshortterm,thiscouldcausethecryptocurrency’svaluetohit$0.94.
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