- dYdX price has been in a strong bearish trend in the past few weeks.
- The coin crashed in line with the performance of other cryptocurrencies.
dYdX price crashed for three straight days and fell to the lowest level since July 2nd of this year. It has dropped by more than 48% from the highest point in August of this year, giving it a market cap of over $172 million.
Cryptocurrency meltdown continues
dYdX is the second-biggest decentralized exchange (DEX) in the world after Uniswap. It is a leading platform that enables people to buy and sell digital currencies. According to CoinMarketCap, the platform handled transactions worth over $1 billion in the past 24 hours. At its peak, dYdX was handling over $7 billion of cryptocurrencies on a daily basis.
dYdX and other centralized and decentralized cryptocurrencies have had a difficulty period in the past few months as volume of transactions dropped. Indeed, the total value of all cryptocurrencies crashed from over $3 trillion to less than $1 trillion. This explains why the dYdX token has crashed by more than 70% from its all-time high.
Learn more about how to buy dYdX.
dYdX is in a transition. In July, the developers announced that they will move from Ethereum and launch an independent chain on the Cosmos ecosystem. This decentralized platform will act as a place where people will be able to build their finance applications. Therefore, there is a likelihood that the network will become a big platform for developers.
dYdX price dropped sharply on Wednesday as other cryptocurrency prices retreated. The impact of this is that the overall volume of daily traded volume will drop, which will affect the company’s returns. Like other exchange tokens like VGX and FTX, revenue from their platforms are usually channeled to the token holders.
Cryptocurrency prices crashed as market risks continued. For example, there is a rising fear of a recession in major economies. At the same time, investors are worried about the soaring interest rates in the US and other countries.
dYdX price prediction
The daily chart shows that the dYdX price has been in a strong bearish trend in the past few weeks. Along the way, the coin has managed to drop below the important resistance level at $2.76, which was the highest point in August.
The coin has also dropped below the 25-day and 50-day moving averages. It is also forming what looks like an inverted cup and handle pattern, which is usually a bearish sign. Therefore, the coin will likely continue falling as sellers target the lower side of the cup at $1, which is about 27% below the current level.
