DYDX token has been trading with a bullish bias since late December, rising 236% year-to-date. The bears attempted to dissuade the rally around mid-January, but bulls put in a good fight, recovering the lost gains with a 34% increase on the day on January 20, revitalizing the uptrend and ensuring that the market favored the upside. Between January 21 and February 1, the dydx price is up 120%, with bulls still leading the market.
At the time of writing, the governance token for the layer 2 protocol of the eponymous non-custodial decentralized cryptocurrency exchange was trading at $3.5, up 16% on the last day. The market cap had also increased 15.58% in the last 24 hours to 551.7 million to put the dydx token at #80 on CoinMarketCap list of crypto tokens by market capitalization size.
The rally comes after the release of the project’s inaugural Annual Report highlighting events and developments within the dydx ecosystem across 2022.
In an official blog published on January 30, the dydx ecosystem shared its first annual Report as a testament that project stakeholders persevered and continued building toward the future of finance despite the rough conditions in the cryptocurrency market across 2022.
In 2022, DeFi proved its resilience and demonstrated clear advantages over CeFi 👊🏾
We believe that the following principles are key to the dYdX protocol’s success in the future:
👉🏾 trustless technology,
👉🏾 self-custody, and
👉🏾 decentralization pic.twitter.com/q1nD3gPlZc
— dYdX Foundation 🦔 (@dydxfoundation) January 30, 2023
The Report detailed developments across the DYDX Foundation, community, governance, Grants Program, the dydx Decentralized Autonomous Organization (DAO), and the DYDX token. Ultimately, it indicated that the ecosystem ranks among the players in the decentralized finance (DeFi) sector that used the challenging times of 2022 to prove their advantage over the counterpart, centralized Finance (CeFi).
Besides ensuring that dydx community members were kept up-to-date with everything taking place in the network, the Report was also a show of increased transparency and accountability, and judging by the price action thereafter, it worked!
DYDX Rates Bullish On Santiment
DYDX has a bullish Santiment score, which measures the performance of an asset over the past five days by volume and price movement. Using the Santiment scope, you get a quick, short-term look at the asset’s recent performance. This is useful for short-term and long-term investors alike, who may be looking to ride a rally or buy the dip, respectively.
The derivatives asset is outperforming the crypto market as it is up 16% to $3.5 while the broader crypto market is up 3.8%.
No Retreat For DYDX As Bulls Target 42.54% Increase To $5.0
Things were looking up for dydx as the bulls worked to record more gains on February 2 when the DYDX token was trading at $3.5 with no indication of a counterforce. The $1.0 support floor provided the jumping-off point for the token, facilitating a 238% leap to today’s intra-day high of $3.6. The derivatives asset was still flashing green, with the technical setup showing that direction with the least resistance was northward.
Notice that the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs) provided strong support downward, which added to the Fibonacci retracement, and further validated the bullish outlook. Accordingly, DYDX price could rise from the current level to retrace the 100% Fibonacci at $3.68, signifying a 57.23% increase from the January 31 low of $2.33.
An increase in buying pressure to break through the $3.68 hurdle could set the speed for DYDX to reach for the 123.6% Fibonacci retracement at $4.3. It could tag the 150% Fibonacci retracement at $5 in highly ambitious cases, marking a 42.5% increase from current levels.
DYDX Daily Chart
The moving average convergence divergence (MACD) indicator was moving upward in the positive region above the zero line, suggesting that the bulls were leading the dydx market. Moreover, the simple moving averages (SMAs) were tipping upward, with a pending bullish cross that would occur if the current trend continued.
A bullish cross gives an early signal of a potential new bullish uptrend and occurs when a faster-moving average (in this case, the 100-SMA) crosses above the slower-moving average (the 200-day SMA), as shown in the chart above. The upward movement of the Relative Strength Index (RSI) at 84 in the overbought region added credence to the bullish outlook while suggesting that there was still room for further gains.
The asset stood on immediate support due to the 78.6% Fibonacci retracement at $3.11. A daily candlestick close below this level could open the drains for the DYDX price to dwindle and retrace the 50% and 38.2% Fibonacci at $2.35 and $2.04, respectively. If push comes to shove, the price could revise the SMAs, in the worst-case scenario, fully retrace the $1.03 support floor.
Other Bullish Alternatives
Investors watching DYDX could be uncertain about a project whose bullish outlook is fueled by the news and developing parameters around the asset, as these are often short-lived. Also, given that the RSI for DYDX is high in the overbought region, the token can only go so far. So why not consider Fight Out, a project that helps you level up your health, earn rewards, and compete in the metaverse by tracking your real-life workouts and improving your avatar’s stats as you progress?
The native token of Fight Out is FGHT, which is still in the presale stage and has raised a remarkable $3.67 million as the countdown to the presale window closing continues.
Let’s go, #FightOutCrew! 🚀
We just raised over $3.6M in our stage 2 presale!
Don’t sleep on this one 🔥
Join the presale now and get up to a 50% bonus! 👊https://t.co/ZJslyfIfU1 pic.twitter.com/JisdK2Dc2P
— Fight Out (@FightOut_) January 30, 2023
Once the presale window closes, the token will be listed on centralized exchanges, a move that will come with increased prices. In fact, industry analysts predict the token will thrive upon listing. Do not be left out!
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