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DYDXUSD

dYdX / US Dollar (DYDXUSDT) Token Analysis 11/09/2023Fundamental Analysis: DYDX (dYdX) is the governance token associated with the layer 2 protocol of the decentralized cryptocurrency exchange that shares its name. This token plays a crucial role in facilitating the operation of the layer 2 protocol and empowers traders, liquidity providers, and partners to actively participate in shaping the protocol's future as part of the community. Token holders enjoy various privileges, including the ability to propose changes to the dYdX layer 2 protocol. They also have opportunities for profit through activities such as token staking and trading fee discounts. Leveraging the StarkEx scalability engine from Starkware, the layer 2 solution on dYdX is specifically tailored for cross-margined perpetual trading. This scaling solution enhances transaction speed, eliminates gas costs, reduces trading fees, and lowers minimum trade sizes on the platform. As an open-source platform with smart contract capabilities, dYdX serves as a versatile ecosystem for users to engage in lending, borrowing, and trading various crypto assets. While the platform does support spot trading, its primary focus lies in derivatives and margin trading. Founded in 2017, dYdX secured over $10 million in seed venture capitalist funding and officially launched in 2019. The DXDY token's initial coin offering (ICO) took place on September 9th, 2021. dYdX stands as a cryptocurrency exchange that melds advanced financial tools with the principles of decentralization. The platform offers support for margin trading, a financial product that empowers investors to amplify their exposure to digital assets through leverage. dYdX offers two distinct margin trading options: isolated margin, allowing users to allocate specific funds for a trade, and cross-margin, which utilizes all assets held by a trader on the platform. Additionally, dYdX facilitates the trading of perpetuals, a type of futures contract without a predetermined expiry date. The exchange provides a maximum leverage of 25x on synthetic assets that have no expiration date. When users deposit funds into their dYdX accounts, they immediately begin earning interest, as their assets become part of a global lending pool dedicated to each cryptocurrency. dYdX ensures the security of lenders by requiring borrowers to maintain sufficient collateral in their accounts at all times. Borrowing on dYdX enables users to swiftly acquire any available asset on the platform by using their existing funds as collateral for the loan. Unlike automated market makers such as Uniswap, dYdX employs an order book architecture. dYdX's Layer 2 solution enhances network scalability by implementing zero-knowledge rollup technology, specifically zkSTARKS. This technology generates proofs while validating a batch of transactions off-chain. These proofs are then transmitted back to the blockchain, where they are verified by a smart contract. zkSTARKS allows for the offloading of resource-intensive computations from the mainnet without compromising decentralization. In addition to trading and liquidity provider rewards, dYdX introduces retroactive mining benefits, demonstrating gratitude to historical users and encouraging their continued participation on the Layer 2 protocol. Token holders can stake their assets in dYdX's safety and liquidity pools. The safety pool serves as a safeguard in case of a shortfall event, while the liquidity pool aims to attract high-quality market makers to the platform. DYDX is an ERC-20 token that has been deployed on the Ethereum mainnet. The layer 2 scaling solution utilized by dYdX is constructed on Starkware's ZK-STARKS technology, leveraging the Ethereum blockchain to validate transaction proofs. The DYDX token was initially made available for purchase in September 2021. Antonio Juliano, a seasoned programmer with a strong background in blockchain technology, serves as the Founder and CEO of dYdX. His foray into the cryptocurrency realm began in 2015 when he secured a position as a software engineer at Coinbase, a prominent cryptocurrency exchange platform. Holding a computer science degree from Princeton University, Antonio Juliano embarked on his entrepreneurial journey and established dYdX in early 2017. Zhuoxun Yin assumes the role of Head of Operations at dYdX. His prior experience includes positions at Nimble, a social sales and marketing CRM, and Bain & Company, a renowned consulting service. Zhuoxun Yin pursued his education at the University of Queensland, where he earned a bachelor's degree in commerce. Technical Analysis: We have applied Fibonacci retracement tools, extending from $0 to its all-time high (ATH) of $27.9. Within this analysis, we have identified potential support and resistance areas on the chart based on the retracement levels. In addition to the retracement levels, we have utilized Fibonacci projection tools to delineate additional potential support areas below the previous all-time low price. This projection is based on the most recent market cycle. Consequently, we have established three potential support levels at $1.4 or 95% and $1 Defined by Price Action and $0.5 defined by Projection of the past cycle. Furthermore, we have outlined three potential price targets using the Fibonacci retracement levels from the ATH cycle. These targets are anticipated within the next few weeks to months and are as follows: First Target Price (1 TP): $4.15 Second Target Price (2 TP): $6 Third Target Price (3 TP): $10.5 These levels serve as key reference points for our analysis, guiding our expectations for future price movements. Sentiment Analysis: Considering the possibility of depreciation in the total market capitalization of cryptocurrencies and the price of Bitcoin (BTC) in the upcoming months, it is reasonable to consider employing a Dollar Cost Averaging (DCA) strategy for long positions at the specified support levels.
Long
by BitonGroup
DYDX Final Stages of Accumulation. 17X PotentialTLDR: • DYDX Adheres to an almost perfect Wyckoff accumulation schematic. • I think it’s a good idea to hang on to the coattails of such a Market Maker. • I estimate that DYDX can reach the 1.618 extension, 37$ at the final phase of the bull market. Preface: • Before we proceed, you must understand that in reality assets don’t follow a picture-perfect accumulation schematic. If you read books such as the “Three Skills of Top Trading” and you wish to apply that knowledge, you have to use discernment. If trading was as easy as technically applying an accumulation schematic to a chart, we would all be millionaires. • Having said that, DYDX follows a fairly easy accumulation schematic, and I am reasonably certain it is a possible 17X if you choose to buy and hold until the final stages of the bull market. The DYDX MMs know their business! Phase A, setting the Range, May 2022 – September 2022: • Selling Climax: In June 2022 DYDXs’ markdown phase was over. DYDX made its range low at the 1$ level. • Automatic Rally: After the panic selling was over, DYDX immediately recovered and set the range-high at 2.7$. • Secondary Test: After the recovery, DYDX retested the range-low at 1.107$. Phase B, Consolidation, September 2022 – February 2023: • Phase B is the consolidation period. During the consolidation phase, the MM tests the extremes of the range to gauge the levels of supply and demand for the asset. This phase includes bull and bear traps to shake out the weak hands and take over the supply as much as possible. Phase C, final shakeout, February 2023 until the present. Phase C begins after the Market Maker already took over the lion’s share of the supply and the asset is ready to move away from the range. This phase includes: • The Spring: In this phase, price will perform a sharp move lower, possibly making a lower low. The purpose of the spring is to cause uninformed traders to believe that the market is bearish and sell. Then, the MM moves prices sharply away from the lows. • It is a common conception that this phase has to include a lower low. However, it doesn’t have to be. You should look for a spring failure pattern and a move up towards the range high. • Sign of Strength: Price moves higher with increasing volume to test the range high and possibly beyond. Phase D, Breakout, and retest of the range high as support: • Phase D is yet to come. If I will see that you people are interested, I will update you. Feel free to press boost Price Potential: • I think that in a bull market DYDX can make it to the 1.618 Fibonacci extension easily, hence the 37$ target. Of course, this is long term. NFA. What do you think? Please share in the comments. Best wishes.
Long
by NewThoughtCrypto
DYDX – Wick fill Strategy TradeTLDR: • If DYDX returns to fill the wick, or lower, it could be a swing long opportunity. Background: • Since May 2022 DYDX is trading in an accumulation range. Range low is at the 1$ level. Mid-range is at 1.65$ and the range high is at 2.7$. Range trading: • My basic rules of trading a range are: 1. Below the mid-range – Look for long opportunities. 2. Above the 75% of the - Look for shorts. 3. Above the 100% - Possible breakout. Wick fill Strategy: • A wick represents an inefficiency in PA. it is a price range with sellers or buyers only. • Wicks tend to get filled, at least to the 50% level, to compensate for the inefficiency. Trade Idea: • This trade is based on the wick fill strategy. Meaning, that if price returns to fill the wick, it could be a lucrative swing-long opportunity. • Entry: 1.45 • SL: 134 • Target: 2.69 I learned the wick fill strategy from a very known trader and teacher. It pains me that I cannot give him credit. However, TV considers this as promotion/publicity, which is not allowed to non-premium subscribers. You know who you are, Thank you Sensei. NFA What do you think? Please Share in the comments. Best wishes to all.
Long
by NewThoughtCrypto
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