Bloodbath in the crypto markets resumed on the second consecutive day after Bitcoin stepped down below the $55K in today’s trading session. The blue chip cryptocurrencies like Bitcoin and Ethereum were down nearly 2.5 to 3% at the time of writing.
In conjunction with the broader market bearishness, the dYdX crypto lost traction and suffered by falling over 5% intraday, adding to a total of 60% in the past three months. With the recent fall, the dYdX crypto is closer to the risk of crashing below an all time high.
The dYdX Chain operates as a proof-of-stake blockchain network, constructed using the Cosmos SDK and utilizing CometBFT for achieving consensus. The DYDX token serves as the primary protocol token for the dYdX Chain, established as such by the consensus of the dYdX community governance.
dYdX Crypto Volume And Volatility Analysis
The dYdX crypto saw the inception of its bearish phase in April when the price loomed below the 200 day exponential moving average. Since then the price could not reclaim the bullish territory and continued to slide lower.
Moreover, the volume analysis showcases that there has been a sharp rise in the transaction volume in the recent sessions. The intraday volume has surged by 214.91% to $67.318 Million a day, reflecting the increased seller interest.
The volume to market capitalization ratio has surged to 9.65% indicating mild volatility in the crypto. out of a total 766.65 Million DYDX tokens, 593.5 Million tokens are currently in circulation.
Can Bulls Defend the Price From Sliding to an all Time Low?
The weakness in the broader crypto market added pressure on the altcoins. dYdX crashed to its All time low, losing 18% a week and 44% a month. The dYdX crypto currently hovers below All the key exponential moving averages of 20, 50 and 200 days suggesting a bearish outlook.
Moreover, the bears were dominating intraday which could drag the price below the all time low. At the time of writing, dYdX crypto was hovering close to $1.03 with an intraday drop of 5.03%.
The RSI and 14 day SMA line have slipped below the 30 level highlighting an oversold scenario. However, a bearish crossover of both the lines was observed indicating a bearish continuation in the short term.
What to Expect From dYdX Next Week?
The broader crypto market has been facing a severe downturn, with Bitcoin falling below $55K. The dYdX crypto was hit hard, dropping over 5% today and 60% over three months. with the recent fall, DYDX has neared its all-time low. Moreover, the transaction volumes have spiked, suggesting increased selling pressure.
Now, if the selling pressure resumes, the DYDX crypto may slide to a new record low extending a bearish trend. The RSI and SMA entered the oversold territory, with a bearish crossover pointing to potential further declines.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
