Chaos

Bitcoin

Impact

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/crypto-market-retreat-dydx-faces-dual-decline-amid-etf-concerns/" data-wpel-link="internal">Crypto Market Retreat: dYdX Faces Dual Decline Amid ETF Concerns</a><br></p>
<p style="text-align: justify">Following a report by the US Securities and Exchange Commission on the potential rejection of spot <a href="https://en.coin-turk.com/reasons-behind-the-recent-bitcoin-price-drop-2/" data-wpel-link="internal">Bitcoin</a> exchange-traded funds (ETFs), the cryptocurrency market experienced a significant decline, while the altcoin dYdX (DYDX) price faced a dual setback. Concurrently, dYdX encountered a system deleveraging event triggered by significant price movement in the SUI-USD market on the dYdX V4 exchange.</p> 
<h2 style="text-align: justify" id="system-deleveraging-unveiling-the-impact">System Deleveraging: Unveiling the Impact</h2> 
<p style="text-align: justify">When the altcoin DYDX price dropped by 30% to reach a low of $2.230, a system deleveraging event occurred. The intense market crash led to liquidity shortages, forcing liquidations and pushing the system to seek profitable accounts to offset losses against those liquidated. This complex situation emerged when the SUI price was at $0.69325.</p> 
<p style="text-align: justify">The turmoil extended to the Yearn Finance (YFI) ecosystem, where an attacker took significant long positions, causing a dramatic 30% drop in the YFI price. Liquidity challenges prevented the attacker from closing their positions, leading to substantial losses in their remaining assets.</p> 
<h2 style="text-align: justify" id="post-collapse-measures-and-overall-outlook">Post-Collapse Measures and Overall Outlook</h2> 
<p style="text-align: justify">In response to the incident, dYdX took measures to prevent recurrence, including updates to risk controls. As the network recovers from the system deleveraging event, various factors influence the outlook of the DYDX price.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-298578 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/01/dydx-cointurk.png" alt="" width="1582" height="679"></p> 
<p style="text-align: justify">The altcoin DYDX price is preparing for a recovery rally, driven by buying pressure and supported by the 200 and 100-day Simple Moving Averages (SMAs) at respective levels of $2.350 and $2.687. The Relative Strength Index (RSI) and Average Directional Index (ADX) indicators highlight rising momentum and the strength of the increasing bullish trend, contributing to the bullish thesis.</p> 
<h2 style="text-align: justify" id="potential-price-targets-upside-scenarios">Potential Price Targets: Upside Scenarios</h2> 
<p style="text-align: justify">In a bullish scenario, increasing buying pressure could push the altcoin DYDX price to surpass the $2.752 resistance, indicating a 15% climb targeting the 50-day SMA at $3.119. Further gains could lead to the recovery of the $3.410 level seen in late December, and an ambitious breakout could potentially reach the supply zone between $3.729 and $3.998.</p> 
<p style="text-align: justify">On the downside, profit-taking actions could lead to a pullback, and the price could test the $2.35 level of 200-day support. A break and close below this level would challenge the bullish thesis and could potentially push the altcoin DYDX price below the recent low of $2.23.</p> 
<h2 style="text-align: justify" id="strategic-insights-for-investors">Strategic Insights for Investors</h2> 
<p style="text-align: justify">As investors navigate the post-collapse landscape, adapting to technical indicators, support levels, and potential resistance zones becomes increasingly important. Monitoring the RSI, ADX, and key moving averages provides insight into the prevailing market sentiment and potential price trajectories.</p> 
<p style="text-align: justify">In conclusion, the post-collapse journey of altcoin dYdX reveals challenges and opportunities. When combined with the potential for a recovery rally, strategic price targets, and downside assessments, it offers a comprehensive perspective for investors aiming to make informed decisions in the dynamic cryptocurrency market.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/crypto-market-retreat-dydx-faces-dual-decline-amid-etf-concerns/" data-wpel-link="internal">Crypto Market Retreat: dYdX Faces Dual Decline Amid ETF Concerns</a></h5>

Crypto Market Retreat: dYdX Faces Dual Decline Amid ETF Concerns

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