DYDX crypto token bid goodbye to January in style, recording a volume of trading of $2.229 Million on January 31 as the price lifted from $2.3 to a high of $3.5 on the day. With such a monthly close, bulls had the upper hand initiate the new month.
At the time of publication, DYDX price was currently worth $3.208, which is 2.23 percent higher than the last day, and was recording a 24-hour volume of trading of $194 Million that elevated its market cap by 0.87 percent to $505.2 million.
dYdX was launched in 2021 and has since grown to become the leading decentralized digital currency derivatives exchange. The platform is built atop the Ethereum (ETH) blockchain tech and offers cryptocurrency margin trading for a wide range of crypto tokens, including but not limited to Bitcoin (BTC) (BTC), Ethereum (ETH) (ETH), Solana (SOL) (SOL), and Polkadot (DOT) (DOT).
To support margin trading, the dYdX platform uses smart contracts, allowing users to trade digital currency derivatives without any intervention from a centralized controlling authority or other third parties.
Impact of Crypto Token Opens up Event Postponement on DYDX Price
The dYdX platform is powered by its native cryptocurrency, DYDX, which has recorded substantial profits since the year started. More interestingly, the crypto token price surged across January after the latest information of a crypto token opens up event broke out, soaring 230 percent to close the 30 days with a high of $3.5. Nonetheless, the event was postponed, and the crypto token has certainly felt the impact.
📢 Crypto Token Unlock Update📢
dYdX Trading Inc., dYdX Foundation and certain parties to the Warrants to Buy Crypto Tokens signed an amendment to, between other things, postpone the preliminary release date applicable to investor $DYDX crypto tokens to Dec 1, 2023
Blog: https://t.co/froqUPL3ay
🧵👇🏻
— dYdX Foundation 🦔 (@dydxfoundation) January 25, 2023
Reports by an official blog, the unlock event that had been scheduled for February 3 was postponed to December 1, 2023. Nevertheless, DYDX holders remain bullish.
The event is expected to see over 150 Million DYDX crypto tokens ($282 million) distributed amongst the project’s stakeholders comprising “investors, employees, and consultants.” With such a generous offer, it is easy to explain the January bull market for the DYDX crypto token. So why is the rally still on when the event has been postponed?
In addition to postponing the crypto token opens up event, the higher-ups have likewise reduced the number of crypto tokens that had been earmarked for unlocking. Citing a paragraph in the blog:
…the unlock has been pushed to December 1, and the number of crypto tokens set to be released into circulation has been reduced to 83 million.
It, this is why, comes after that the derivatives crypto token will maintain its limited supply until the end of the year. With the supply of crypto tokens capped until then, demand for the DYDX crypto token is expected to increase. In addition, if the opens up event went as had been planned, 150 Million DYDX crypto tokens would be added into the circulating supply, causing the derivative’s crypto token price to drop.
As investors anticipated such a drawdown, plenty of market players saw it as a chance to enter short positions against the DYDX price. Nonetheless, they were compelled to close those positions after the token’s rally kicked off. This, coupled with the limited supply of DYDX crypto tokens going forward, has fueled substantial profits for the investment, and bulls are looking to the $5.165 horizon, for now.
DYDX Price Target 60.96 percent Increase To $5.165?
At the time of publication, DYDX was currently worth $3.208, trapped during a supplier congestion zone stretching from $3.10 and $4.0. For bulls to maintain the uptrend, they would have to push the price over this bracket.
To that endeavor, they need confront the immediate resistance at $3.5. A daily candlestick close over this level would increase the chances of a breakout for the DYDX price to escape the supplier congestion zone and confront the following hurdle at $4.5.
An boost in buying pressure over this zone, this is why, with bulls driven by ambition, could see DYDX price reach the $5.165 level, marking a 60.96 percent increase from the present level.
DYDX/USD Daily Chart
TradingView Chart: DYDX/USDTo gather momentum for escaping the supplier congestion zone, DYDX bulls have two areas for a pause, the $2.716 and $2.138, respectively. These are potential areas for regrouping as they organize their comeback.
The upward trajectory of the Moving Average Intersection Divergence showed that the path with the least resistance was northward, with the histograms still flashing green. This was a sign that more buyers than sellers populated the DYDX market.
In addition, the 50-day Simple Moving Average (SMA) at $1.63 was likewise moving upward to show more buyers coming into the market. If the tendency continues, the 50-SMA will be on the path to cross over the 200-day and 100-day SMA at $1.703 and $1.711, respectively, registering a positive tendency cross. And once a slower-moving average crosses over a faster-moving average, it often signifies the beginning of another uptrend.
Conversely, if sellers flock to the dYdX market now that bears have come in (red bars), the DYDX price could fall to lose the immediate support at $3.0, exposing the derivatives crypto token to a free fall that could see the price tread lower than the $2.716 and $2.138 support levels.
In such a case, the odds for solace at the Simple Moving Averages (SMAs) would be low, which meant the price could retest the $1.04 support floor.
The downward movement of the Relative Strength Index (RSI) at 79 within the overbought zone suggested buying momentum was easing and a correction was possible.
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