• At press time, dYdX is the second best performing coin.

  • About $1 million worth of DYDX was liquidated on Binance at $1.18.

dYdX [DYDX] has experienced a stunning breakout, gaining over 38% in the past 24 hours. This strong growth makes it the second best performing cryptocurrency among the top 100 cryptocurrencies by market cap on CoinMarketCap.

With fees from its protocol distributed primarily in the form of USDC to stakers, dYdX continues to gain traction as a cryptocurrency worth accumulating, especially as the market enters what is expected to be a bullish final quarter of the year.

At press time, DYDX is trading at $1.24, with trading volume surging by more than 892%, reaching approximately $130 million in 24-hour volume. The volume-to-market cap ratio is 11%, indicating high liquidity levels, reducing the risk of large price swings in the short term.

Looking at the price action, it has broken out of the ascending triangle and has posted impressive gains. The DYDX/USDT pair continues to break above resistance and has the potential to target the $2 mark by the end of the month.

While DYDX is still down 48% year to date, today’s breakout could signal a reversal if it can sustain above $1.4, paving the way for a $2 target.

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The $0.83 support level, which has been tested four times without breaking, has proven to be the bottom of this cycle, indicating a possible bullish trend until 2025. The MACD indicator has also turned bullish, further supporting the case for rising prices.

Liquidations and Open Interests

Additionally, the liquidation heatmap shows that the price of DYDX is moving towards high liquidity areas, leading to a large number of liquidations.

At press time, traders have liquidated around $1 million worth of DYDX on Binance at $1.18. The price action of the L1 token is currently eyeing the $1.3 region for the next liquidation.

As liquidity exceeds current levels, the price of DYDX could rise accordingly, reinforcing the bullish outlook for the year end. This makes the $2 target realistic.

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In terms of open interest, the OI-weighted funding rate is 0.0109%, which suggests that long traders are paying shorts.

This positive ratio indicates that holders are confident in the future of the token and are showing an increased interest in buying and holding the chain’s tokens.

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Backed by favorable technical indicators and growing liquidity, DYDX shows strong market momentum and is expected to rise before the end of the year.