The prominent DeFi platform DYDX had an impressive start in 2021 with a satisfying airdrop, but only a small portion of the total supply was initially circulated, causing prices to drop from previous highs of $20 due to ongoing unlocking events. The recent surpassing of $3 for DYDX price raises questions about its significance.
While most altcoins are in the red, DYDX is trading around $3.08, showing a nearly 5% increase. It has been on an upward trend within a rising parallel channel since the beginning of 2023, contrasting with BTC, which recently lost channel support. DYDX’s strength is confirmed by the channel’s support and resistance lines, last validated in November, and by its resilience despite negative market sentiment, supported by a bullish weekly RSI.
Crypto analysts on social media generally anticipate a momentum gain for DYDX. Investor Nihilus suggested that momentum would increase once the price broke the resistance trend line, which DYDX successfully did, surpassing $3. CryptoDude999 expressed belief in the uptrend, targeting above $4, while analyst KMvision confirmed the optimism for peaks beyond $4.
The price, which was rejected by the channel’s resistance line in November 2023, has now crossed this zone on the daily chart, justifying optimism. The daily RSI is above 50, indicating that a target above $4 is plausible.
If the upward movement continues, DYDX could see a 25% increase, reaching the next resistance at $3.9. Beyond that, targets of $4.36 and $7.2 are identified, recalling April 2022’s surge past $7. However, closures below the channel’s resistance line could invalidate the breakout, potentially leading to a decline towards $2.4.