- DYDX price has overcome the $2.84 hurdle and flipped into a support floor.
- This development will likely allow the altcoin to rally 20% and tag the range’s midpoint at $3.60.
- A daily candlestick close that closes below $2.84 will invalidate the bullish thesis.
DYDX price shows signs of rallying higher after the recent move that flipped a key hurdle into a support floor. This uptick in buying pressure is likely to attract more sidelined buyers, propelling DYDX higher.
Also read: dYdX price jumps almost 10%, defies narrative after 150 million DYDX token hit the market
DYDX price eyes higher highs
DYDX price crashed 35% between November 15 and 21, 2023, and created a range extending from $4.37 to $2.84. Lack of momentum, however, led to a breakout below the range low. The recent uptick in buying pressure has pushed it back above the $2.84 floor back into the range.
During this process, the Relative Strength Index (RSI) and Awesome Oscillator (AO) have both flipped above their respective mean levels of 50 and 0, respectively. Hence, going forward, investors can expect DYDX price to retrace back into the twelve-hour imbalance between $2.95 and $3.02 – this will present a key buying opportunity.
Following this potential retracement, DYDX price is likely going to revert to the mean, rising back up and tagging the $3.60 hurdle – a rally of nearly 20%.
DYDX/USDT 12-hour chart
DYDX price is not alone in triggering a run-up in the last 24 hours; many altcoins and meme coins have been doing the same. But this short-term bullishness is heavily reliant on Bitcoin price not crashing.
If BTC sheds weight, it could cause altcoins to sink. In such a case, if DYDX price produces a daily candlestick close below $2.84, it will create a lower low and invalidate the bullish thesis. This development could see the altcoin crash 19% to tag the Jan 8 swing low at $2.27.
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