On October 19, DYDX was priced at $0.96. In the past 24 hours, the decentralized protocol’s native token has surged by 30%.
This price movement positions DYDX among the top-performing altcoins today, second only to ApeCoin (APE) within the top 100. What is driving this surge, and what can we expect for the token moving forward?
dYdX Volume Increases Leading Up to Significant Event
As of now, DYDX is trading at $1.22. This increase coincides with the upcoming conference, set to commence tomorrow, October 21, in Dubai, indicating heightened anticipation in the market for this event.
Moreover, the altcoin’s trading volume has surged to $210.53 million. Volume is a critical metric as it reflects the significance of a market movement. A price change accompanied by high volume is typically regarded as more impactful, whereas a lower volume shift is often seen as less meaningful.
The increase in DYDX’s trading volume could be linked to the conference and the initiative to launch the Trump Election Perpetual Trading Market. This decentralized platform empowers users to leverage trades in a perpetual market tied to election outcomes.
Read more: Understanding dYdX: A Guide to the Decentralized Perpetual Exchange
Should the volume continue to rise alongside the price, DYDX’s value may maintain its upward trajectory. Conversely, if the volume does not keep pace, the price increase could begin to decelerate.
This trend has also impacted social dominance, which measures the volume of discourse surrounding the token. A rise in social dominance alongside price increases can indicate growing interest in the token.
On the other hand, a decline in social dominance suggests that conversations about DYDX are eclipsing those of other top 100 cryptocurrencies. Given the current trajectory, the altcoin might exceed $1.22 in the near future.
DYDX Price Prediction: Anticipating Higher Peaks
An analysis of the 4-hour DYDX/USD chart indicates that the Awesome Oscillator (AO), which had been in the negative range, has transitioned to the positive area, signaling a bullish trend for the token.
This positive momentum has allowed DYDX’s price to rebound off the $0.94 support level. Additionally, the Chaikin Money Flow (CMF) displays an upward trajectory, suggesting increased accumulation around the altcoin. If buying pressure maintains its upward trend, DYDX could potentially reach the highest wick value of $1.35.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Nonetheless, the token’s price could decline if distribution exceeds accumulation. In the short term, this might lead to a drop in the cryptocurrency’s value to around $0.94.
Disclaimer
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