dYdX price has accomplished an applaudable rally in the crypto market. While nearly all cryptos have experienced a high correlation with Bitcoin’s negative returns. dYdX has become this month’s crypto outperformer. Key levels have been defined to gauge where dYdX might head next.
dYdX price shows strength
dYdX price stunned the market as the bulls produced a 130% rally during the third trading week of November. As the price consolidates, the technicals may hint that the rally could extend into higher targets.
dYdX price currently auctions at $2.26 as the bulls have begun taking profit near the newfound monthly high. During the rally, the Volume Profile Indicator displayed the largest influx of bullish transactions since 2021. The bulls also successfully pierced through the 8-day exponential moving average (EMA) and 21-day simple moving average during the recent surge.
Based on the technicals, the dYdX bullrun appears convincing enough for sidelined bulls to want to get involved. From a swing trading perspective, the $3.55 and $4.00 zones seem like ideal targets for bulls to aim for. However, traders should be aware of a short-term spike into the $1.90 zone where the recently breached 21-day simple moving average awaits a retest.
The bullish outlook could be invalid if the $1.45 liquidity level is tagged. If the bears successfully breach the invalidation levels, a free-fall decline targeting $1.12. The zone would stand a fair chance of occurring. dYdX would decline by 50% if the bullish invalidation scenario played out.