DYDX Weekly Analysis Feb 24

DYDX is trading in a tight range around $0.09 with a limited 1.44% weekly rise; although it carries short-term recovery potential with an oversold RSI signal, the dominant downtrend structure and Bitcoin’s bearish momentum require a cautious strategy for altcoins.

Weekly Market Summary for DYDX

DYDX traded in a narrow range at the $0.09 level ($0.09 – $0.09) throughout the week, leaving behind a period of low volatility. Although the weekly change of +1.44% provided a modest recovery, the $22.61M volume profile indicates limited market interest. The primary trend continues as a downtrend, while RSI at 29.02 points to the oversold region. Although the MACD shows a positive histogram with a bullish divergence signal, short-term bearish pressure dominates as the price remains below EMA20 ($0.11). The market structure exhibits accumulation phase characteristics, while resistances on the upside form critical test points for a trend change. For portfolio managers, this week’s conditions suggest cautious position management dependent on BTC’s downtrend – check the DYDX detailed spot analysis page for detailed spot data.

Trend Structure and Market Phases

Long-Term Trend Analysis

The long-term trend structure exhibits a clear downtrend character for DYDX; higher timeframes (1W/1M) maintain intact lower highs and lower lows formation. The price has been in a major correction phase with nearly 80% decline from 2025 highs and requires a strong catalyst to reach the $0.1355 upside objective. Market structure suggests that the trend remains intact as long as the $0.0868 major support is not broken – this is an inflection point aligned with the lower band of the long-term descending channel. The MACD trend filter gives a bearish signal, while divergences in momentum indicators (RSI oversold) signal potential trend weakness. In the macro context, general consolidation in the DeFi sector and rising BTC dominance may delay long-term trend reversal for altcoins like DYDX. For position traders, this structure maintains a short bias on monthly horizons, while volume increase should be awaited for accumulation signals.

Accumulation/Distribution Analysis

Market phase analysis reveals that DYDX shows accumulation phase characteristics: low volatility, oversold RSI (29.02), and positive MACD histogram suggest smart money is quietly accumulating. Although the volume profile is at low levels with $22.61M, the POC (Point of Control) has stabilized around $0.09. No distribution patterns are emerging; on the contrary, the weekly doji-like candle formation reflects indecision. According to Wyckoff methodology, this carries spring-like oversold bounce potential, but there is secondary test risk without a $0.0931 resistance breakout. For confirmation of the accumulation phase, increased volume and higher lows formation are essential – otherwise, distribution transition signals may strengthen. Follow DYDX futures market data for futures market dynamics.

Multi-Timeframe Confluence

Daily Chart View

On the daily timeframe, DYDX exhibits a bearish short-term structure below EMA20 ($0.11); as the price consolidates at $0.09, there is 1 support / 1 resistance level confluence on 1D. Although RSI divergence is bullish, the weakening of the MACD histogram indicates momentum loss. Key inflection point at $0.0931 – this overlaps with the daily upper Bollinger band. Confluence of support across timeframes concentrates at $0.0868 (score 74/100), with downside risk extending to $0.0307. The daily view suggests range-bound trading; volume confirmation is essential for breakout.

Weekly Chart View

On the weekly chart, the downtrend dominates; upper shadows with 2 support / 4 resistance breakdown give distribution signals. The price is leaning on the weekly descending trendline, and the $0.12 trend filter resistance is critical. Across 1D/3D/1W, 8 strong levels show majority resistance (especially 4R on 1W), requiring a clean breakout for reversal. The accumulation/distribution balance is shifting toward accumulation on the weekly, but limited by BTC context. Multi-timeframe confluence emphasizes the $0.0868 – $0.0931 range – holding here keeps the trend intact.

Critical Decision Points

Key levels that will define direction: Major support $0.0868 (74/100 score, 1D/3D/1W confluence), a break triggers downtrend acceleration ($0.0307 downside). Major resistance $0.0931 (61/100), followed by $0.12 and $0.1355 upside objectives. These levels will determine market phase transition; holding $0.0868 brings bullish bias, breach brings bearish confirmation. Visit the DYDX and other analyses page for all analyses.

Weekly Strategy Recommendation

In the Bullish Case

If the bullish scenario plays out ($0.0931 breakout + volume increase), long positions target $0.1355 (R/R ~3:1). Stop-loss below $0.0868, partial profit at $0.12. Scale-in with accumulation phase confirmation, confluence with BTC above $64k.

In the Bearish Case

In the bearish scenario ($0.0868 breach), short bias descends to $0.0307 (high R/R). Trail stop above $0.0931 to keep trend intact. Synchronized risk management with BTC downtrend is essential.

Bitcoin Correlation

BTC at $63,926 in downtrend (-2.36% 24h), supertrend bearish – cautionary for altcoins like DYDX. If BTC key supports $63,849 / $60,025 break, DYDX tests $0.0868; if resistances $64,323 / $67,702 hold, altseason bounce possible. Correlation ~0.85; rising BTC dominance accelerates DYDX distribution – position traders should use BTC levels as primary filter.

Conclusion: Key Points for Next Week

Next week watch: $0.0868 support hold / $0.0931 breakout, BTC $64k retest, volume spikes. While oversold bounce potential exists, downtrend bias dominates – stay cautious with strategic R/R calculations. If market phase evolves to accumulation, long setups; otherwise, short opportunities take precedence.