The price of dYdX (DYDX) rose by more than 18% in the last 24 hours, pushing the token toward the $0.16 resistance level amid a tightening supply and a surge in speculative trading. The move comes as capital rotates into select altcoins, even as regulators in the Philippines issued a warning against the exchange for lack of registration.
The primary driver for the price increase was a significant supply crunch over the past 30 days. According to market data, the token supply available on exchanges declined from 399.2K to 355.4K. This reduction in available tokens, coupled with an increase in the number of holders to over 2,800, has created upward pressure on the price.
The supply squeeze was amplified by a 165% explosion in daily trading volume, which reached around $25 million. On the daily charts, the token broke out of a ten-day consolidation range between $0.1279 and $0.1530. The Stochastic Momentum Index (SMI) registered a reading of 71.6, indicating strong bullish momentum as it entered the overbought zone.
However, the rally faces potential headwinds. The Long/Short Ratio dropped from a peak of 1.2 to 0.82, signaling that traders are beginning to take profits. A failure to break and hold above the $0.16 level could see the price revert to its previous consolidation range, while a decisive breakout could set the stage for a test of the $0.18 resistance area.
This article is for informational purposes only and does not constitute investment advice.
