dYdX Price on the Verge of 2x Rally—Breaking This Next Resistance Is Key

dYdX could see a break out soon as it approaches a critical resistance level. According to respected analyst WorldOfCharts, the DYDX/USDT pair is showing promising signs of a potential breakout that could lead to significant gains.

Cryptocurrency exchange token dYdX (DYDX) might be gearing up for a 2x rally if it manages to slice through a critical resistance level, analysis suggests.

dYdX Price Eyeing 2x Surge

After a prolonged downturn in 2022, dYdX has shown signs of recovery in recent months. The exchange token surged over 1,000% from its December 2022 lows, outperforming most crypto assets.

Now, as DYDX approaches a critical resistance level, analysis suggests that a successful breakout could lead to a 2x rally.

According to WorldOfCharts, the DYDX/USDT pair is facing strong resistance at the $0.83-$0.85 zone. This level coincides with a descending trendline resistance, formed by connecting lower highs since early December 2024.

If DYDX manages to break above this resistance with strong volume, it could trigger a massive rally. WorldOfCharts' analysis indicates a potential 109.65% rally from the breakout point, which would roughly send DYDX to the $2.00 level.

This projection is based on the Fib retracement levels and the volume profile, suggesting that a breakout could lead to a move of 1.618x the Fib retracement distance.

Volume Analysis Adds Credibility

One aspect that makes this setup particularly promising is the increasing trading volume. Throughout the downtrend, DYDX has formed lower highs in both price and volume, indicating a weakening downtrend.

However, the recent price rally is accompanied by a surge in trading volume, which could be a sign of institutions or "smart money" entering the market. This volume is crucial for sustaining any breakout attempt.

As WorldOfCharts points out, the volume is increasing into the breakout zone, suggesting that traders are anticipating a potential breakout and positioning themselves accordingly.