Currently, DYDX is trading at $1.269. However, the decentralized protocol’s native token has gained 30% in the past 24 hours.
As a result, DYDX is one of the best performing altcoins today, trailing only ApeCoin (APE) in the top 100. Why did this happen and what’s next for the coin?
dYdX volume rises ahead of major events
As of this writing, DYDX is trading at $1.26. This comes ahead of the project’s conference scheduled for October 21 in Dubai, suggesting the wider market is enthusiastic about the upcoming event.
In addition to this, the trading volume of altcoins has surged to $210.53 million. Volume is a key metric as it measures the relative importance of market movements. Price changes with larger volumes are considered more significant, while price changes with smaller volumes are generally considered less impactful.
For DYDX, the surge in volume could be tied to the conference and the project’s launch of a Trump election perpetual market. For context, the decentralized platform allows users to take positions in perpetual markets tied to election results.
DYDX volume. Source: Santiment
If volume continues to increase along with price, then the value of DYDX will likely continue its upward trend. If not, price increases will slow.
Additionally, this development has impacted social dominance, which tracks the level of discussion surrounding a token. When social dominance rises as price increases, it can indicate growing demand for the token.
Conversely, the decline in social dominance suggests that the discussion around DYDX has surpassed that of other top 100 cryptos. Given the current trend, the altcoin could rise above $1.22 in the coming days.
DYDX Social Dominance. Source: Santiment
DYDX Price Prediction: Higher Highs Next
A look at the 4-hour DYDX/USD chart shows that the Awesome Oscillator (AO), which was previously in negative territory, has now turned into positive territory, indicating bullish momentum for the coin.
The momentum has allowed the price of DYDX to rebound from the $0.94 support level. The Chaikin Money Flow (CMF) is also trending upwards, indicating that accumulation around the altcoin is increasing. If the buying pressure continues to rise, DYDX could climb to a peak of $1.35.
DYDX price analysis. Source: TradingView
However, if the rate of distribution exceeds the rate of accumulation, the value of the token could fall. In the short term, this could result in the crypto being worth $0.94.
