dYdX [DYDX] has witnessed an impressive surge, with a remarkable 38% increase within the past day. This substantial growth has propelled it to become the second-best performer among digital assets in the top 100 ranked by market capitalization on CoinMarketCap.
By distributing most of its protocol fees to stakers in USDC, dYdX remains a crypto asset that attracts interest as an accumulation opportunity, particularly as the market enters what is anticipated to be a bullish final quarter of the year.
dYdX Price Movement and Forecast
Currently trading at $1.24, DYDX has witnessed a surge in trading volume by over 892%, amounting to around $130 million in the past 24 hours. The ratio of volume to market cap is at 11%, indicating a significant level of liquidity that helps mitigate the risk of substantial price fluctuations in the short term.
From a price action standpoint, DYDX has broken out of an ascending triangle pattern, resulting in its impressive gains. As the DYDX/USDT pair continues to breach resistance levels, it is potentially eyeing the $2 threshold by the end of the month.
Even though DYDX remains down by 48% for the year, the recent breakout could potentially signify a reversal if it can sustain levels above $1.4, paving the way for the $2 price target to be reached.
The $0.83 support level, tested and held firm four times so far, indicates the lower limit for this cycle, suggesting a possible bullish trend heading into 2025. In addition, the MACD indicator has turned bullish, further reinforcing the case for higher price levels.
Liquidation and Open Interest Trends
Moreover, the liquidation heatmap indicates that DYDX’s price is moving towards zones of high liquidity, resulting in notable liquidations.
At the time of writing, traders liquidated approximately $1 million worth of DYDX at $1.18 on Binance. The price action of the L1 token is now aiming for the $1.3 zone for the next round of liquidation.
With a potential uptick in liquidity above current levels, DYDX’s price is likely to follow suit, reinforcing a positive outlook for the end of the year and making the $2 target appear achievable.
Regarding open interest, the OI-weighted funding rate sits at 0.0109%, indicating that long traders are paying shorts.
This encouraging rate suggests that token holders are optimistic about the future of the cryptocurrency, with a growing interest in acquiring and holding onto the token.
DYDX demonstrates robust market momentum, supported by favorable technical signals and expanding liquidity, positioning it for potential gains as the year draws to a close.