DYDX has recently entered the ranks of top-performing assets in the market, but the main driving force behind its price movement does not come from on-chain fundamentals. Data shows that protocol transaction fees and total locked value have changed only slightly, with the current more significant support coming from buying in the spot and derivatives markets.
The price reached the upper edge of the channel.
From a chart perspective, the DYDX indicator has reached the upper boundary of its ascending channel. This area tends to accumulate selling pressure, and if it fails to break through effectively, the price may fall back to the lower edge of the channel to find new support.
However, DYDX had previously broken through a key supply zone. This area had suppressed price increases, and now that it has been breached, market expectations for a further breakout of the channel resistance have strengthened.
Cumulative indicators continue to rise
From a technical perspective, the Accumulation/Distribution indicator rose to 40.8 million, indicating stronger signs of market accumulation, with trading volume also rising in tandem. This suggests that there is still ongoing capital participation behind the current upward trend.
In terms of moving averages, the 20-day moving average is now above the 50-day, 100-day, and 200-day moving averages, forming a bullish alignment. Strengthening short-term moving averages usually indicates that upward momentum is continuing.
Spot and perpetual buying were relatively strong.
Spot market data shows that traders have cumulatively bought approximately $616,600 worth of DYDX over the past four days, indicating continued buying interest near current price levels. The perpetual contract market also strengthened in tandem, with open interest rising to approximately $48.68 million.
Meanwhile, OI weighted funding rates show that long positions dominate. The simultaneous increase in both spot buying and leveraged positions indicates that the market is still betting on further price increases, but with prices approaching channel resistance, the short-term direction still depends on whether subsequent funds can continue to amplify.
