The cryptocurrency market experienced a significant downturn following a report by Matrixport regarding the potential rejection of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission, impacting the altcoin dYdX (DYDX), which faced a dual decline. Concurrently, dYdX’s V4 exchange encountered a system liquidation event triggered by a significant price movement in the SUI-USD market.
As the altcoin DYDX price plummeted by 30% to a low of $2.230, a system liquidation event was triggered due to a market crash that led to liquidity shortages, forcing the system to look for profitable accounts to offset losses against liquidated positions. This situation unfolded when the SUI price was at $0.69325.
The chaos extended to the Yearn Finance (YFI) ecosystem, where an attacker took substantial long positions, causing a dramatic 30% drop in YFI price. Liquidity issues prevented the attacker from closing positions, leading to significant losses in their remaining assets.
In response to the incident, dYdX implemented measures, including updates to risk controls, to prevent recurrence. As the network recovers from the system liquidation event, the outlook for DYDX price is influenced by various factors.
The altcoin DYDX price is preparing for a recovery rally, driven by buying pressure and supported by the 200 and 100-day Simple Moving Averages (SMAs) at $2.350 and $2.687, respectively. Indicators like the Relative Strength Index (RSI) and Average Directional Index (ADX) highlight rising momentum and the strength of the uptrend, supporting a bullish thesis.
Investors navigating the post-crash landscape must adapt to technical indicators, support levels, and potential resistance zones. Monitoring RSI, ADX, and key moving averages provides insights into prevailing market sentiment and potential price trajectories, offering a comprehensive perspective for informed decision-making in the dynamic crypto market.