Foreign media reports that DYDX has fallen 12% in the past 24 hours, largely mirroring the overall weakness in altcoins. However, the market hasn't completely turned pessimistic. With the altcoin seasonal index rising to 44, some funds are still observing whether new rotation opportunities will emerge, thus bringing DYDX back into the spotlight for traders.
Prices return to key buying zone
From a daily chart perspective, DYDX has fallen back to an area perceived by the market as a demand gap, meaning a potential point where buying pressure may pick up again. The article argues that this area will determine whether the short-term trend will bottom out.
If this level provides support, the price could retest the $0.28 level. This area is considered the next significant resistance zone.
Trading volume and selling pressure both slowed down.
As of press time, DYDX's trading volume over the past day was approximately $10 million. The decline in price coupled with decreasing volume typically indicates weakening selling pressure, rather than a sustained increase.
The article also mentions that the Bull Bear Power indicator has shown green bars, indicating that buying power is beginning to recover. The Aroon indicator also gives a bullish signal, with Aroon Up at 92.86% and Aroon Down at 0.00%, suggesting that the previous upward trend has not been completely broken.
However, these signals primarily reflect easing selling pressure and do not necessarily indicate a confirmed rebound. For a more sustained recovery to materialize, more explicit and proactive buying is needed.
Long positions remain in the derivatives market.
Perpetual contract data also shows that market sentiment has not completely turned bearish. CoinGlass data shows that DYDX open interest fell 11% to approximately $38 million, indicating a contraction in leveraged positions.
However, at the same time, derivatives trading volume continues to rise, indicating that market participation has not cooled significantly. More notably, the weighted average funding rate based on open interest remains at 0.0073%, meaning that long positions are still incurring costs to maintain their holdings.
In summary, while DYDX has clearly retreated in the short term, the key support zone has not yet been breached. The article suggests that if buying pressure can sustain the price within the current range, it may attempt to recover upwards and retest higher resistance levels.
