DYDX Breaks Formation: Technicals Flash Green as Protocol Fundamentals Tighten

Decentralized exchange token DYDX shows textbook bullish divergence—RSI hooks upward while price holds above key support. Meanwhile, staking APYs tick north of 20% as shorts get squeezed.

The setup? A perfect storm for traders who still believe in ’fundamentals’ after last year’s meme-coins-outperform-everything debacle. Layer 2 volume spikes suggest real usage, not just degenerate leverage plays.

Watch the $2.75 resistance level. Break that, and the path clears toward Q1 2025 highs—assuming the Fed doesn’t yank liquidity again like it’s 2022.

Looking ahead, the next immediate target is around $0.80, provided the price breaks cleanly above the $0.75 resistance with good volume and strong follow-through. This level represents the upper boundary of the range formed after the breakout above the descending trendline.

A decisive move above $0.80 WOULD open the door to the $1.10–$1.20 zone, which served as a key support area before the breakdown that led to the move below $0.80. If momentum continues to build and DYDX reclaims this zone, the next major target would be the psychological $2.00 level and potentially beyond.

The potential upcoming rally may be buoyed by the recent developments on the tokenomics side, most notably dYdX’s launch of its first-ever token buyback program. This initiative, which began on March 24, allocates 25% of net protocol fees toward purchasing DYDX from the open market and staking it to bolster network security. Coupled with a 50% reduction in emissions expected in June, this may provide fundamental support to any bullish price action in the NEAR term.