dYdX (DYDX) is among the best performing altcoins today, with a price gain of over 18% in 24 hours.
The rally occurred even as the Philippine SEC warned the public not to invest in dYdX. The regulator cited the lack of registration in accordance with the country’s legal standards. But why was the altcoin trending higher?
Why is DYDX available today?
There was an increase in speculative trading as capital shifted to altcoins. This resulted in daily trading volume increasing by approximately 165%, to approximately $25 million. Although the increase is significant, the volume remains small.
Additionally, there has been a supply shortage over the past 30 days. The token supply trend increased from 399.2K DYDX at the end of March to 355.4 coins at press time.
A growing number of holders has led to a tightening of supply. There were over 2,800 holders, with the most recent and largest holdings being 164.4K DYDX valued at $25.4K.
Bulls fight bears at $0.16
The daily rally showed up on the price charts, with bulls pushing DYDX towards the $0.16 resistance. The altcoin has been consolidating between $0.1279 and $0.1530 for over ten days but appears to be breaking out.
Even during this consolidation, the altcoin remained above the SuperTrend indicator. This showed that the bulls were in control and gaining momentum. In fact, the Stochastic Momentum Index (SMI) was 71.6, surpassing the overbought zone.
The bulls are trying to surpass the daily high of $0.16, which makes $0.18 their next problem. From the huge green candles, it looked like the bulls were taking control. Otherwise, DYDX could return to the sideways consolidation range.
Therefore, the next price trajectory of DYDX depends on whether the side, bullish or bearish, wins the battle around $0.16.
Is the rally threatened?
Looking at the Long/Short ratio to gauge the altcoin’s trading activity in the derivative showed that buying pressure was decreasing. The metric rose from a high of $1.2 to $0.82, indicating profit-taking.
Additional profit-taking could jeopardize the continuation of the rally. The data showed that the 10-day consolidation was dominated by selling rather than accumulation.
Overall, DYDX had mixed signals despite the price continuing to reach higher levels. The daily pivot point at $0.13 acted as a short-term demand level that, if breached, would invalidate the bullish outlook.
Final summary
- DYDX is up 18% in the past 24 hours as supply dwindles and daily trading volume explodes.
- Bulls and bears were fighting for control at $0.16, with buyers appearing at an advantage.
