dYdX price jumps almost 10%, defies narrative after 150 million DYDX token hit the market

dYdX (DYDX) token price is attempting a recovery rally after a bearish catalyst, the voluminous token unlocks, was priced in. Investors who anticipated the related volatility are sure to have made profit, with more incoming, potentially, amid rising momentum.

Also Read: DYDX price expected to fall further as whales dump tokens after massive unlock event

dYdX price on a recovery rally

dYdX (DYDX) price is up 6% in the last 24 hours, coming on the back of an unlocks event that saw up to 150 DYDX tokens unleashed into the market. The tokens were allocated to investors, founders, employees, advisors and consultants. The token’s price is pulling north, defying the narrative, as investors were likely to cash in for quick profit.  

The tokens were unlocked on the dYdX chain, which is not supported by any centralized exchange just yet. Notably, Ethereum to dYdX chain bridge is one way and cannot be converted back to ERC-20.

As reported, many investors continue to keep their tokens bridged within the wETH dYdX smart contract with blockchain analyst Lookonchain reporting that three whale wallets had received tokens from the dYdX foundation had moved 6.81 million DYDX tokens worth up to $21.46 million at the time to Binance exchange.

With three wallets, 0xD21B, 0x63C6, and 0xa70d still collectively holding more than 14 million DYDX tokens, it could mean more seller momentum is underway, despite the current climb.

dYdX price outlook

dYdX price is hinting at a recovery rally, pulling north with the Relative Strength Index (RSI) hinting at the continuation of the trend. Its position above the 50 level points to a strong price strength and if the trajectory continues, a buy signal would soon be executed once it crosses above the signal line (yellow band).  

Traders heeding this call could extend the uptrend for dYdX price, potentially catapulting it past the $3.601 resistance level. In a highly bullish case, it could extrapolate into the supply zone extending from $3.722 to $4.003. To confirm the continuation of the uptrend, however, DYDX market value must overcome the mean threshold at $3.862.

DYDX/USDT 1-day chart

On the flipside, with the Awesome Oscillator (AO) indicator showing red histogram bars that are pulling towards the zero level and ultimately into the negative territory, dYdX price could be coiling up for a correction.

The ensuing selling pressure could see dYdX price lose the $2.967 support level to collect the buy-side liquidity residing underneath.