Posted: December 10, 2024

• DYDX’s spot inflow/outflow revealed that exchanges have seen $11 million worth of DYDX outflows
• DYDX could soar by 90% to hit the $4.70-level if it holds itself above $2.30

DYDX, the native token of the decentralized exchange (dYdX), has gained significant attention from whales following the formation of a bullish price action pattern. On 9 December, the whale transaction tracker EyeOnChain shared a post on X (formerly Twitter), highlighting that a whale has shifted its interest from Uniswap (UNI) to DYDX.

In a post on X, EyeOnChain noted that a whale wallet address “0x972” swapped UNI tokens for DYDX through Binance, the world’s largest cryptocurrency exchange.

The report further added that the whale initially deposited a massive 206,100 UNI tokens worth $3.97 million to Binance. Three hours after the deposit, the whale withdrew 1.065 million DYDX worth $2.82 million from Binance at an average price of $2.642.

However, this massive withdrawal occurred after DYDX broke out from its strong resistance level of $2.41.

DYDX technical analysis and key levels

According to AMBCrypto’s technical analysis, DYDX appeared to be retesting the breakout level at press time. Based on its recent price action, if the altcoin holds above the $2.30-level, there may be a strong possibility it could rally significantly by 90% to hit the $4.70-level.

Otherwise, this bullish thesis may fail.

At the time of writing, DYDX’s Relative Strength Index (RSI) was below the overbought area, suggesting that the asset still has enough room to soar in the coming days.

Bullish on-chain metrics

The altcoin’s breakout attracted significant interest from both individual investors and institutions, as reported by the on-chain analytics firm Coinglass.

$11 million worth of DYDX outflows

Data from DYDX’s spot inflow/outflow index revealed that exchanges have seen substantial outflows of $11 million in the last 24 hours alone.

In the context of cryptocurrencies, “outflow” refers to the movement of assets from exchanges to wallet addresses for long-term holding. Exchange outflows often indicate a potential upside rally or an ideal buying opportunity.

Traders show waning interest

Finally, besides long-term holders, DYDX’s Open Interest (OI) suggested that traders have been liquidating their positions, either due to the ongoing price correction or stop-loss triggers. Coinglass’s OI metrics revealed that DYDX’s OI dropped by 11% in the last 24 hours and 4% in the last four hours.

These on-chain metrics, together, hinted that long-term holders are still showing interest in the altcoin. This, while traders’ interest appears to be lacking, potentially due to the ongoing correction on the price charts.