The digital currency dYdX is positioned at a pivotal juncture, with its price currently strengthening its support bases at previously challenging resistance levels. These developments are setting the stage for a possible price rally, a scenario that has the dYdX community abuzz with anticipation. The uptrend of the cryptocurrency‘s value is particularly stimulating for investors who have been closely monitoring the asset.
Consolidating Support for Growth
During the second week of January 2024, dYdX demonstrated resilience as it bounced back from a $2.30 support, forming a higher low point on the charts. This pattern switch, from selling at peaks to purchasing at troughs, marks a positive change in investor behavior. Following this rebound, the coin’s value managed to breach the substantial $3.40 resistance barrier, which it is now striving to confirm as a staunch support level.
The momentum is further confirmed by the Weekly Relative Strength Index (RSI), which has surged from mid-levels, reinforcing the notion that dYdX has triumphantly pulled through from the $3.40 region. Should this bullish trend maintain its course, the cryptocurrency could experience a significant 74.28% upswing, potentially hitting the next major resistance point at $7.
Targeting New Highs
dYdX managed to overcome and sustain above the $3.50 resistance, turning it into a reliable support, as highlighted by chart analysis. This accomplishment suggests a cessation of the previous price downturn from $4.37 and paves the way for a forthcoming ascent. The Daily RSI indicates a market leaning heavily in favor of the bulls, hinting at the likelihood of dYdX surpassing its yearly high and aiming for the $5.10 resistance zone.
Given the current market indicators, dYdX looks primed for an upward movement in the near term. The immediate goal lies at the $5.10 mark, with aspirations to extend gains towards the $7 threshold, painting a promising outlook for the altcoin’s future price trajectory.