DYDX Faces Potential Breakout From Descending Channel, Analyst Eyes $6 If This Happens

Decentralized derivatives exchange dYdX’s native token, DYDX, is showing signs of a possible bullish breakout from its recent descending channel, according to analysis from prominent crypto analysts.

Crypto trader World of Charts notes that DYDX has been consolidating within a descending channel on higher timeframes. However, it is now retesting channel support and bouncing, leading World of Charts to expect a breakout soon:

“DYDX Overall Consolidating In Descending Channel In H12 Tf Now Retesting Perfectly & Bouncing From Strong Support Area Expecting Descending Channel Breakout Soon.”

My Crypto Paradise also highlights the descending channel that DYDX has been trading in, with two unsuccessful tests of channel resistance already. They note that DYDX is now rising from demand around $2.55, stating:

“Currently, it is rising for a bullish continuation from the demand level of $2.550. If it maintains its upward momentum, it could reach the supply zone above $4.240.”

However, My Crypto Paradise cautions that DYDX needs to hold the $2.228 level on any pullbacks. Otherwise, falling below this could “trigger a significant bearish drop.”

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In summary, DYDX appears poised for a breakout from its recent descending channel, which would turn the near-term outlook decisively bullish with upside targets around $5-6.

Key levels to watch are the channel resistance around $3, the $2.55 demand zone, and $2.228 support. A successful breakout could spark the next leg higher, while failing to hold the $2.228 support risks a deeper bearish decline.

Traders should watch for a breakout or breakdown in the coming sessions to signal DYDX’s next significant directional move.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!