- dYdX crypto price has been in a strong bullish trend recently.
- It has formed a rising wedge pattern on the 4H chart.
The dYdX price has emerged as a major winner in this month’s cryptocurrency crash. The coin jumped to a high of $2.78 on Tuesday, which was about 137% above the lowest level last week. Its market cap has jumped to over $174 million, making it the 131st biggest cryptocurrency in the world.
Why is dYdX rising?
dYdX is a leading decentralized exchange (DEX) that makes it possible for people to buy and sell cryptocurrencies. It is powered by Starkware, an Ethereum-based platform.
dYdX has an easy-to-use platform and has significantly lower costs compared to other decentralized exchanges like Uniswap and PancakeSwap. Recently, the company made it free to trade for the first $100k per month.
dYdX price has risen sharply in the past few days even as other cryptocurrencies crashed. It is unclear why this rebound happened. A possible reason is that some investors believe that it is now the best-decentralized alternative to FTX.
Find out how to buy dYdX.
Some analysts believe that DEX exchanges are poised to become more dominant than their centralized peers. They are usually more transparent and open-source, which makes them safer than conventional exchanges. dYdX has also started publishing its proof of reserves
Recently, we have seen the collapse of centralized entities like Celsius, BlockFi, Voyager Digital, and Vauld. In this period, no major DEX has collapsed.
dYdX price also rallied after the developers launched the Swap Mode, which combines the ease of trading on a DEX with the power of trading perpetuals. The product was launched to 50% of its users, with the rest expected to receive it in the next few weeks. It has a closer resemblance to Uniswap’s swap products.
dYdX price has also rallied as investors wait for the V4 launch. Its fourth version will introduce dYdX Chain, which will be built on Cosmos. Cosmos is one of the fastest growing Ethereum rivals.
dYdX price forecast
The four-hour chart shows that the dYdX crypto price has been in a strong bullish trend in the past few days. In this period, it managed to move above the important resistance level at $2, the highest point on November 7.
It has also rallied above the 25-day and 50-day moving averages. At the same time, the Relative Strength Index (RSI) has rallied above the neutral point of 50. A closer look shows that it has formed a rising wedge pattern that is shown in black.
Therefore, there is a significant risk that dYdX will retreat and retest the important support level at $2.
