- dYdX price has been in a spectacular rally recently.
- The coin has a room for another 30% rally to $3.
The dYdX price has bounced back in the past few days as cryptocurrency prices jump and as volume bounces back. It has also risen as investors wait for the upcoming launch of dYdX v4, which will run on the Cosmos blockchain. It is trading at $2.33, which was the highest point since May this year.
Why is dYdX rising?
dYdX is a leading decentralized exchange that had millions of dollars at its peak. The platform is built on top of Ethereum’s blockchain. In its platform, users can buy and sell cryptocurrencies. They can also trade non-fungible tokens (NFT).
Like all decentralized and centralized exchanges, dYdX has gone through a difficult period in the past few months. For one, many exchanges have faced liquidity challenges as most crypto holders have exited their positions. This explains why exchanges like Vauld and Voyager filed for bankruptcy.
Most importantly, they have seen a dramatic decline in trading volume. At its peak, dYdX was processing over $2 billion worth of cryptocurrencies per day. The figure has dropped to less than $800 million.
Learn more about how to buy dYdX.
Therefore, the dYdX price has rallied recently because of the overall recovery of cryptocurrencies. Most cryptocurrencies have rallied by at least 30% from their YTD lows. For example, Ethereum price has surged from $800 to over $1,600.
As such, investors believe that dYdX and other centralized exchanges will do well as the industry recovers. This also explains why shares of companies like Coinbase, Block, and Bakkt have rallied recently.
Further, the dYdX price has rallied as investors hope that the platform will emerge at a better place when the industry recovers. For one, the developers are building the fourth version on Cosmos. dYdX chain will both power the platform and be a place where developers can build their standalone platforms.
dYdX price prediction
In my last dYdX forecast, I wrote that the coin would rise to $2.33. This prediction was accurate as the coin has risen to that level. Now, it has risen above the important 25-day and 50-day on the four-hour chart. The Relative Strength Index has moved slightly below the overbought level. It has also risen above the ascending trendline shown in green.
Therefore, the outlook for coin is still bullish, with the next key resistance level being at $3, which is about 30% above the current level.
