In the crypto market, there is a DEX exchange that holds a leading position in turnover and trading volume among all other decentralized exchanges.
This exchange has its own token, $DYDX , which, despite its leading position in the market, has been falling without retracements since its listing.
The fundamental reason for the decline is the unlocks of DYDX tokens and their subsequent sale on the market.
By May 2023, more than 28.8% of the total token issuance had been unlocked, which led to a collapse of the coin by -96% 📉
From May 2023 to May 2024, another 18% of the total issuance was unlocked.
After this date, the amount of monthly unlocks decreased significantly, and my team and I decided to purchase the coin for our altcoin portfolios at a price of $2.1.
As of today, we are sitting at a drawdown on this coin. However, we understand that the coin is still trading near the bottom, and such a drawdown is within the norm.
Now the coin is due for growth along with the market, and there are the following fundamental reasons for this:
1️⃣ The majority of unlocks have already occurred, and everyone who wanted to sell their coins has already done so.
2️⃣ Now, only 1% of the token's issuance will enter the market monthly until 2027.
3️⃣ The overall market trend is upward in the medium term.
4️⃣ This autumn, the project promises a very large platform update, and in a rising trend, any positive news acts as fuel for growth.
🕯 Technical analysis
According to the technical analysis, the coin has apparently reached its final bottom.
The price successfully broke through the medium-term downward trend line and established itself above it.
In the last 2 months, a huge volume has entered the coin. And the indicators are very well cooled.
The moving averages are already bending upwards, which means a super bullish pattern known as the Golden Cross will be formed very soon. This pattern is lagging, so it's important to see signs of its formation in advance.
Currently, it's important for the price to break through a significant resistance zone: the moving average MA200d and the volume profile.
When this happens, the price will show a very large upward impulse, as there is a lot of short liquidity above that hasn't been removed for 9 months!
⚠️ For those without a position, it is safer to enter the coin upon breaking the MA200d, around $1.4.
Be sure to adhere to risk management.
Keep in mind that there is a possibility of experiencing a -30% drawdown from current levels.
The most pessimistic growth target is $2.7, while the optimal target is above $4.35 (although we previously targeted higher).
🤟 Did you like the review or want to understand cryptocurrencies and technical analysis better?
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