Today, Bitcoin’s price experienced a significant drop from its $100K level, while the altcoin market remained strong. Among the standout performers, the price of dYdX soared over 35%, reaching the $2.5 resistance mark. Triggered by increasing demand and positive news, analysts are bullish that the dYdX price may soon surpass the $3.2 resistance level.
dYdX’s value increased by 35% in the last 24 hours, reaching a seven-month peak of $2.48 on December 6, which pushed its market capitalization to more than $1.6 billion. Data from Coinglass shows that dYdX price witnessed a total liquidation of around $3.9 million, and buyers liquidated around $2.2 million worth of positions.
DYDX’s recent surge was largely triggered by news that President-elect Donald Trump has appointed David O. Sacks as the White House Director of Artificial Intelligence and Cryptocurrency.
The increasing interest comes from Sacks’ role in Craft Ventures, a venture capital firm that has heavily invested in DYDX. The link between the newly appointed cryptocurrency authority and the token sparked strong bullish sentiment among investors, driving DYDX’s latest gains.
Another factor likely driving the altcoin’s rally is the increasing interest from whale investors. Data from IntoTheBlock shows that DYDX whale holder net flows changed from a net outflow of $766K worth of DYDX tokens on December 2 to a net inflow exceeding $2.2 billion worth of DYDX tokens by Wednesday, December 4.
When whales start to accumulate an altcoin, it often triggers fear of missing out (FOMO) among retail investors, who rush to buy the altcoin in hopes of securing profits. Additionally, data from DeFiLlama indicates that the total value locked in the DeFi protocol has risen from approximately $226 million in November to over $388 million currently.
However, as the price faced resistance around $2.5, the large transaction volume dropped from the peak of $15.7 million to the recent low of $3.2 million. This shows the continuous withdrawal from whales amid rising volatility in the price chart.
dYdX price broke above its immediate resistance channels, resulting in a push toward $2.5. However, buyers failed to hold the momentum around that level, plunging the price toward 23.6% Fib level. As of writing, dYdX price trades at $2.3, surging over 21% in the last 24 hours.
The upward trend in moving averages and the RSI approaching the overbought territory indicate that the path of least resistance is upward. The DYDX/USDT pair could climb to $2.5 and potentially reach $3.2, where significant selling pressure is anticipated.
This bullish scenario could be invalidated in the short term if the price declines and falls below the 20-day EMA at $1.9. Such a drop would suggest a lack of buyer interest at higher prices, possibly leading the pair to drop to the 50-day SMA at $1.3.
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