• DYDX has made large gains in January and is currently in a period of consolidation and pullback.
• The $2.4 zone has seen consolidation in the past, as well as a bounce in recent days.
• Indicators suggest that buyers may be interested in buying this move back above the $2.6 level of support, with potential take-profit levels at $3.25 and $4.
The birth of 2021 brought a rally that has lasted close to six weeks for altcoins like DYDX. During this time, there have been periods of consolidation and pullback witnessed by the token.
The $2.4 region is an important level on the 4-hour price chart since it is both an H4 bullish order block and a zone beneath which the asset consolidated in late January before making a violent move upward on 31st January. This could indicate that many buyers are likely to be interested in this area due to its history of holding up prices during times of pullbacks or consolidations.
The 4-hour RSI has not yet recovered to push above the neutral 50 mark, despite the near 10% bounce within the past three days, while On Balance Volume (OBV) made lower highs even though DYDX burst above the $2.8 resistance with vehemence . The 30-day MVRV ratio fell toward zero to indicate short-term holders had taken profits; however, sentiment remains negative overall as indicated by mean coin age dropping since late December which signals increased selling pressure over time..
Buyers should exercise caution when trading DYDX as Bitcoin sits at critical support zone around $21k at present time; risk can be managed by buying back into momentum once prices break beyond $2.6 level of support with potential take-profit levels identified at around $3-$4 mark if Bitcoin can regain its bullishness which could result in strong returns for DYDX token holders..
A drop beneath either daily timeframe’s support ($1-$1) ,or lower timeframe’s supports ($ 2 -$ 2 ) would invalidate any aforementioned buy scenario for DYdex tokens .