- dYdX is a leading decentralized exchange.
- The price of its token has more than doubled recently.
- Investors are cheering the upcoming launch of dYdX Chain.
The dYdX price jumped sharply on Tuesday as investors bought the dip. The token rose to a high of $2, which is substantially above last week’s low of $1. The exchange has a total market cap of over $120 million.
dYdX rebounds
The cryptocurrency industry has been going through a challenging period in the past few months. The totla market value of all coins has crashed from an all-time high of over $3 trillion to less than $1 trillion.
At the same time, we have seen the spectacular collapse of some of the best-known brands in the industry. In May, Terra made headlines when its cryptocurrency crashed from $120 to less than $1. Recently, companies like BlockFi, Vauld, Celsius, and Voyager Digital are all in life support.
As a result, there are concerns about the health of the industry, with many analysts recommending temporary withdrawals from both centralized and decentralized exchanges (DEXes).
dYdX is one of the leading decentralized exchanges that have come under intense pressure lately. The main concern is that Three Arrows Capital (TAC) was one of the investors in the platform. In a recent statement, the developers noted that the collapse of TAC will not have an impact on the platform.
Learn more about how to buy dYdX.
dYdX also made headlines when it selected Cosmos as its preferred smart contract for its fourth version of the platform. As a result, it will dump Ethereum for the dYdX Chain. Other changes are that the fourth version will feature a fully decentralized, off-chain, orderbook, and matching engine that is capable of handling more transactions.
It is unclear why the dYdX price has jumped sharply today. A possible reason is that the coin is being pumped by social media users. It was trending in both Twitter and StockTwits at the time of writing.
dYdX price prediction
The four-hour chart shows that the dYdX price has been in a strong bullish trend in the past few days. Along the way, the coin has jumped above the important resistance level at $1.60, which was the highest point on June 25th. It also rose above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been rising.
dYdX has also formed an inverted head and shoulders pattern. Therefore, there is a likelihood that the coin will keep rising as bulls target the key resistance at $2.33, which is almost 30% above the current level.
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