4 Reasons Why I think DYDX is bullish ( $15-$16 is valuable)
Disclaimer
This technical analysis by no means, is a financial advice, Please do you own research.
I am going to give you 3 reason why DYDX is such valuable at this price to buy, from fundamental to technical.
1. Accumulation of whales
As you can see, price got supported around $15 support area 4 times. This indicates the price of DYDX is such valuable and looks interesting for buyers. MVRV of the token is way below 1 and the closest competitor is Perpetual Protocol which the application is not as user friendly and complete as DYDX.
2.Volume profile
Speaking of buyers interest, by using Volume Profile, it can be clearly seen there is an interest of trading between $14.5-$15.5 which is acting as a support level for the price. The next volume resistance is around $21.5-$23.9 which is Point of Control (big one)
3.Parallel channel
From 1st of NOV that price entered the previous channel, it retested and gave confirmation that it broke into the channel. There is no major resistance till $17.4 which if breaks through, it will form short term triple bottom pattern which is a bullish pattern.
4. RSI+ and LMACD indicators
As the price reacted well to the support area, we expect price increases till next major resistance which is $17.4. This will brings RSI and lower cloud of RSI+ (which is RSI enhanced with long term EMA) well above 50. Still, LMACD does not help us that much and have to monitor it after $17.4 to see if MACD (blue line in LMACD) can cross the previous high which is -0.005.
Now with all these explanation, lets talk about scenarios from the best to the worst.
Scenario 1
Price goes up till next resistance area ($17.4-$18.3), it retests and continues with bullish sign till next Resistance which is $20.7-$21.5. This level is interesting as there is two levels of Fib resistance ( Fib retrace of last major upward trend and Fib extension of current low). If it passes it can be expected that price forms a short term natural patterns( as a result of POC and amount of interest to trade in that area). $24 level and ATH are the next levels of resistance before breaking out to new ATH.
Scenario 2
We as analyst and investor should consider worst case scenarios. if price drops to $11 level, it will form natural pattern (still not bearish) until it breaks it below the level (less likely but possible).
I predict it crosses the ATH in a month and it will from a cup and handle pattern to break the ATH(long shot). So many points are in favor of Bullish scenarios.
I ll keep you updated if it crosses ATH for more analysis.
This technical analysis by no means, is a financial advice, Please do you own research.
I am going to give you 3 reason why DYDX is such valuable at this price to buy, from fundamental to technical.
1. Accumulation of whales
As you can see, price got supported around $15 support area 4 times. This indicates the price of DYDX is such valuable and looks interesting for buyers. MVRV of the token is way below 1 and the closest competitor is Perpetual Protocol which the application is not as user friendly and complete as DYDX.
2.Volume profile
Speaking of buyers interest, by using Volume Profile, it can be clearly seen there is an interest of trading between $14.5-$15.5 which is acting as a support level for the price. The next volume resistance is around $21.5-$23.9 which is Point of Control (big one)
3.Parallel channel
From 1st of NOV that price entered the previous channel, it retested and gave confirmation that it broke into the channel. There is no major resistance till $17.4 which if breaks through, it will form short term triple bottom pattern which is a bullish pattern.
4. RSI+ and LMACD indicators
As the price reacted well to the support area, we expect price increases till next major resistance which is $17.4. This will brings RSI and lower cloud of RSI+ (which is RSI enhanced with long term EMA) well above 50. Still, LMACD does not help us that much and have to monitor it after $17.4 to see if MACD (blue line in LMACD) can cross the previous high which is -0.005.
Now with all these explanation, lets talk about scenarios from the best to the worst.
Scenario 1
Price goes up till next resistance area ($17.4-$18.3), it retests and continues with bullish sign till next Resistance which is $20.7-$21.5. This level is interesting as there is two levels of Fib resistance ( Fib retrace of last major upward trend and Fib extension of current low). If it passes it can be expected that price forms a short term natural patterns( as a result of POC and amount of interest to trade in that area). $24 level and ATH are the next levels of resistance before breaking out to new ATH.
Scenario 2
We as analyst and investor should consider worst case scenarios. if price drops to $11 level, it will form natural pattern (still not bearish) until it breaks it below the level (less likely but possible).
I predict it crosses the ATH in a month and it will from a cup and handle pattern to break the ATH(long shot). So many points are in favor of Bullish scenarios.
I ll keep you updated if it crosses ATH for more analysis.
