dYdX has rallied over the past two weeks, rising above the $3 mark and recovering above the horizontal support area. The price also made a bullish breakout from the short-term descending parallel channel. Determining whether a bullish trend reversal has occurred.
DYDX wins back lost resistance
The price of dYdX has been growing inside an ascending parallel channel since the beginning of 2023. Its support and resistance trendlines have been tested quite a few times, most recently in November (red icon).
The ensuing decline sent the token below a critical horizontal resistance area that it previously appeared to have broken through. However, over the past two weeks, the token has regained ground and is now recovering above this horizontal area.
The weekly momentum indicator RSI maintains a foothold above the horizontal resistance area as the indicator has bounced off the 50 level.
What analysts say
Cryptocurrency traders and analysts on Platform X are positive about the currency’s prospects. Thus, trader Nihilus previously wrote that the trend will be confirmed as bullish as soon as the price breaks through this resistance line:
#DYDX 2h.
– flip black box and send it higher.
i will open long position if i see breakout.#DYDX pic.twitter.com/1YQxFAYpkW
— Nihilus (@nihilus_XBT) January 17, 2024
Following the tweet, dYdX actually made a bullish breakout and rose above $3.
$DYDX 5D Timeframe? https://t.co/of8UKvDAgc pic.twitter.com/dJwm2CI3Ya
— dude (@cryptodude999) January 18, 2024
DYDX Forecast: Will Growth Continue?
While the weekly time frame does not confirm the direction of the trend, the daily time frame gives bullish signals.
Price dynamics show that today the price has made a bullish breakout from a descending parallel channel that has been present on the chart since November 2023.
The daily RSI (green) also broke through the resistance trend line and rose above the neutral level of 50. Both of these indicators are considered signs of a bullish trend. If the upward movement continues, dYdX could rise 25% and reach the next resistance at $3.90. This will bring the price to the resistance line of the long-term channel.
On the other hand, a close below the channel resistance line will invalidate the bullish breakout. In this case, dYdX could fall 25% to immediate support at $2.40.
