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- 1 The bulls are actively striving to maintain the key psychological support level at $2 level.
- 2 Despite the broader recovery in the crypto market, dYdX has yet to experience a significant rebound, suggesting a room for movement.
Amidst the market’s general upswing and recent favorable news, various cryptocurrencies climbed the ranks. Yet, dYdX crypto could not capitalize significantly on the market’s revival and was losing the gains in intraday.
Nonetheless, the bulls are attempting to safeguard the crucial $2 threshold, endeavoring to prevent any additional decline. Let’s analyze using different metrics and data whether the current buying momentum is potent enough to alter the prevailing trend, or if sellers are poised to seize another chance to enter the market at a lower price.
Improved Social Sentiments Could Increase Volume Inflow?
Data from the financial analytics platform app.santiment.net reveals that bullish sentiment is on the rise, as evidenced by social sentiment metrics such as social volume and social dominance. These indicators show signs of improvement in engagement from users across social media platforms, including X ( formerly Twitter), Telegram etc.
Furthermore, social dominance is a gauge of the frequency and intensity with which a cryptocurrency is discussed within the community. An uptick in these social metrics often correlates with positive price movements.
Additionally, heightened social interaction may translate into increased trading volume. As of now, the volume influx is modest, pointing to less committed investors driving the purchases. A substantial increase in trading volume is essential for a potential trend reversal in price.
According to coinmarketcap.com, the intraday trading volume was recorded at $50,497, marking a decline of nearly 16% from the previous day. The volume-to-market cap ratio stands at 4.65%, indicating relatively low volatility for the cryptocurrency.
Can dYdX Bounce to $3?
The ascent to the $3 mark hinges on a decisive breakout of $2.16 level. The daily chart discloses that the price has successfully shattered a prolonged two-month trendline resistance, signaling early signs of a breakout.
Yet, to truly shift the momentum to the buyers’ side, a robust influx of buying volume and a consistent position above the $2.1 mark are imperative. Should this breakout materialize effectively, the cryptocurrency could potentially exhibit a 30 to 40% surge, setting its sights on loftier objectives of $2.5 and $3.
Conclusion.
Despite the broader market recovery, dYdX crypto struggled to retain intraday gains, with bulls defending the $2 level. Social sentiment metrics from app.santiment.net show increased user engagement, hinting at a positive price trend. However, current trading volumes suggest participation by less committed investors.
Moreover, for a price reversal, higher volume inflows are crucial. As per data obtained from Coinmarketcap, a 16% drop in intraday volume, with a low volume-to-market cap ratio indicating minimal volatility was noted. A successful push beyond $2.16 could lead to a 30-40% price increase, targeting $2.5 and $3 levels.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
