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The dYdX (DYDX) price is trying to break above the $2.55 resistance zone. A doubling of the prize could ensue if successful.

DYDX is the governance token of the eponymous decentralized exchange (DEX) for both Margin of negociation and spot trading. It allows users to contribute to the future of the protocol. Token holders can take advantage of staking and reduced fees when trading, and have the right to propose protocol changes.

Despite the Bankruptcy of FTX and the ensuing crypto crash, DYDX price rose significantly over the past week. With all the negativity that surrounds others centralized exchangesDEX-linked coins may thrive as traders seek safer places to hold assets that are not susceptible to a crypto market crash.

Thus, DYDX has a chance to become a strong story soon, although it will depend if there will be another wave of centralized exchange settlements. This is already visible in the number of addresses on the exchange, which increased sharply (red) after the FTX fiasco.

DYDX Price Makes Third Breakout Attempt

The DYDX token has broken above an ascending support line since June 19. It bounced on September 18 and November 19 (green icons). The latter catalyzed the ongoing bullish movement and created a bullish engulfing candlestick. There was no positive news from DYDX to precede this increase.

On November 14, the price was rejected by the $2.55 resistance zone, but is still trading slightly below. Combined with the ascending support line, it creates an ascending triangle, considered a bullish pattern.

The daily IRS also supports the possibility of a breakout, as it rose above 50 after a deviation (red circle).

If a breakout occurs, the closest resistance would be at $5. This would cause the DYDX price to increase by 125%. Also, the height of the triangle projected onto the breakout level gives a similar target.

Conversely, continued rejection would lead to a re-test of the ascending support line. A price breakdown below the ascending support line would invalidate the bullish price prediction.

Will an escape take place?

Technical analysis of the weekly chart supports continued upward movement.

First, the price created a double bottom pattern between June and September. The double bottom is considered a bullish pattern.

Second, the weekly RSI has generated a bullish divergence and is moving above 50.

Finally, the price broke out of a descending resistance line. It created a massively bullish candlestick during the week of November 7-16, which validated the previous resistance line as support.

As a result, the weekly chart supports the continuation of the bullish move.

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