23 April, 2024



DYDX Likely to Fall Lower After Huge Withdrawal from the Security Module Staking Pool

21 Dec, 2022

27 Nov, 2023

DYDX falls by 7% in the past 24 hours after the conclusion of the security staking module. The total amount withdrawn from the staking pool, 19,765,085 $DYDX ($26M), accounts for 30% of its circulating supply (65,569,295). This high volume of sell-offs is likely to create bearish pressure on DYDX prices in the near future. Investors should monitor DYDX closely as it may be a good opportunity to capitalize on potential retracement opportunities.

DYDX is trading at $1.30 after opening the daily trading session at $1.45 and reaching a high of $1.50, before closing the session virtually unchanged from where it opened. Although the price has been relatively range-bound over the past few weeks, with the trading volume totaling to $54,443,380.

DYDX price movement: Coinmarketcap

DYDX’s price chart indicates that the downward trend is likely to continue, but investors shouldn’t forget that this could also represent a buying opportunity if they can identify bottom levels.

DYDX Technical Analysis

DYDX price analysis shows the digital asset is trading in a descending triangle pattern which could lead to a strong bearish move in the coming weeks. The MACD and RSI are both pointing downwards, signaling a continuation of the bearish momentum.

With the recent sell-offs, DYDX is likely to enter a period of consolidation before it can resume its uptrend. The Fibonacci Retracement levels indicate that DYDX could find support at the 0.382 level or even lower.

DYDX daily chart: TradingView

Further technical indications show the digital asset is forming a bear flag pattern, which implies an impending bearish move in the near future. The Stochastic RSI is also showing bearish divergence and this could be a signal for investors to look out for further retracements.

Conclusion

In conclusion, the recent withdrawal from the security staking pool has put DYDX at risk of a bearish retracement. The key support levels to watch are the 0.382 Fibonacci Retracement and the bear flag pattern which could provide a good entry point for investors looking to capitalize on potential retracement opportunities.

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