dYdX (DYDX) remained under pressure as losses deepened, with the token falling 12% in the past 24 hours. The decline aligns with broader weakness in the altcoin market.
However, the Altcoin Season Index continued to climb and reached 44. If sentiment improves further, DYDX could be among the tokens that will benefit from renewed market interest.
From a market structure perspective, DYDX has returned to a key demand area that could determine its next move.
Can DYDX bounce back from this level?
The daily chart shows DYDX moving back into a fair value gap (FVG) of demand, an area where longs can return.
A bounce from this area could push the token towards the $0.28 region, which marks the next notable resistance area on the chart. Volume data also suggests weakening selling pressure.
At press time, trading volume had fallen to around $10 million over the past day. Declining volumes alongside falling prices often suggest that sellers are losing momentum.
This setup left traders wondering if buyers would defend the current demand zone.
Are buyers starting to come back?
The Bull Bear Power indicator suggests that buying pressure may gradually improve. Despite the recent decline, the indicator formed a green histogram bar, indicating that buyers were beginning to re-enter the market.
Further support came from the Aroon indicator, which measures the strength and direction of the trend. At press time, the Aroon Up line stood at 92.86%, while the Aroon Down line remained at 0.00%.
This reading suggests that the broader upward trend has remained intact despite the recent pullback.
Nonetheless, traders would likely need stronger buying activity before a sustainable recovery could develop.
What do derivatives traders do?
Activity in the perpetual futures market provided additional insight into market sentiment.
According to CoinGlass, Open Interest decreased by 11% to around $38 million, showing that leveraged exposure has decreased.
However, trading volume increased during the same period, indicating that market participation remained active.
Other data showed that long traders continued to dominate open positions. The OI-weighted funding rate stood at 0.0073%, suggesting traders were still paying to maintain long exposure.
This alignment indicates that bullish sentiment remains present despite the recent correction.
If buyers defend the current demand zone, DYDX could attempt a recovery towards higher resistance levels in the coming sessions.
Final summary
- DYDX has moved back into a demand fair value gap, an area often watched for potential reversals.
- Trading volume has fallen alongside the price, suggesting that selling pressure may be losing strength.
