First, starting with the overall market sentiment, everything lines up for us to stay positive – at this point, developments like the ETF approval are considered a done deal.
Now to the charts. The recent price swing from $2.20 to $4.30 is the scene of the crime for our Fibonacci analysis.
DYDX pulled back right to the key 61.8% retracement level around $3, which aligns with a horizontal support level that has shown demand on multiple tests.
It's also holding above a rising bullish trendline across crypto majors. So, in confluence with the constructive market backdrop, we see the $3 region presenting a buying opportunity on this dip.
We recommend swing trading to ride the bull back to recent highs. Also, our long-term position remains unchanged. This is an asset on which you can expect to see a sustained uptrend when the bull run kicks off fully.
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