Can DYDX price overcome two critical hurdles and rally 25%?

DYDX price is making another comeback that could lead to handsome gains if it is successful. Investors need to watch out for the 12-hour momentum indicators, which clearly signal an imminent explosive upward move for the altcoin. 

Read more: DYDX Price Forecast: dYdX holders likely to witness 20% gains

DYDX price edges closer to breakout

DYDX price created a range, extending from $2.84 to $4.36, as it shed 35% of its value between November 15 and 21. The range low at $2.84 played a key role in supporting the price action up to January 3. But a sudden selling pressure spike back then pushed the altcoin to breach the support floor and flip it into a resistance level.

Since then, DYDX price has been hovering below it for nearly a month, with one failed attempt at a breakout. 

The Relative Strength Index (RSI) has cleared the 50 mean level and is now waiting on the Awesome Oscillator (AO) to do the same. A successful flip of the AO above its mean level will confirm the start of a bull rally. 

Often, the 12-hour time frame is regarded as key by day traders, and they take lower time frame actions based on the signals spotted here. As an example, investors can take a look at the AO flipping above the zero line and its effect on the DYDX price.

On December 22, DYDX price rallied 10% as the AO flipped above the zero line. Similarly, a 13.5% move was spotted between January 14 and 18 as the momentum indicator climbed above the baseline. 

Hence, a similar breakout, if accompanied by a flip of the $2.84 level into a support floor, will add wings to the rally. This move could potentially trigger an extension of the upswing to the aforementioned range’s midpoint at $3.60. However, this upswing needs to overcome the declining resistance level that connects the November 25 and December 27 swing highs. 

In total, this move would constitute a 25% gain from the $2.84 level. 

DYDX/USDT 12-hour chart

On the other hand, if DYDX price fails to overcome the $2.84 hurdle and instead gets rejected, investors should expect a retest of the $2.58 support floor. A daily candlestick close below this level will create a lower low and invalidate the bullish thesis.

Such a development could see DYDX price trigger an 18% correction to the next key foothold at $2.13, especially if the selling pressure fails to cease. 

Also read: Four altcoins most likely to bounce during Christmas holidays: LTC, STORJ, ILV, DYDX