DYDX bearish divergence

Like some other DEX (Decentralized Exchange) cryptos, DYDX had made a 125% jump from its ATL at $1 on 18/06. A very nice performance which indicates that DYDX is a very intesting symbol to keep an eye on.

However, at this time DYDX is showing some weakness. A bearish divergence and an Evening Doji Star candle are being formed (in 12H TF). As a consequence, a double top will be formed as well.

For these reasons, a short setup is proposed as in chart.

• Enter when the current candle finishes in red
  
• Invalidation is when there is a 12H candle closing above $2.15
  
• Targets are the blue lines and Stoploss is the red one.
  

In my opinion, $1.7 is a strong support where DYDX will strongly bounce. We need to observe the reaction of DYDX at this level to see if a continuation or a reversal will be the next move (provided that the first leg down to $1.7 will have been done).

Comment:

DYDX is moving as expected (while BTC is being rejected by its MA 200W)

Comment:

TP1 $1.959 hit (+5% profit)

Trade closed: stop reached:

SL hit for this trade.
Crypto and stock markets has strongly bounced.