DYDX Weekly Analysis Jan 28

DYDX spent the week in a narrow range around $0.17 with a 0.71% rise; however, while the overall downtrend maintains its dominance, holding signals at critical supports could prepare the market for an accumulation phase – BTC’s downtrend continues to create pressure on altcoins.

Weekly Market Summary for DYDX

DYDX followed a calm course in the $0.17-$0.18 range last week, recording a 0.71% rise. The volume profile preceded the $36.19M level, indicating institutional positioning rather than speculative movements. While the primary trend remains downward, RSI at 42.25 is in the neutral-bearish zone, and MACD confirms bearish momentum with a negative histogram. Short-term bearish signals strengthened as it failed to stay above EMA20 ($0.18). In the macro context, there is no significant news flow; however, the rising BTC dominance is pressuring altcoins. This week, monitor critical levels for detailed DYDX spot analysis.

Trend Structure and Market Phases

Long-Term Trend Analysis

The market structure clarifies DYDX’s long-term downtrend: lower highs at higher levels and lower lows confirm movement within the bearish channel. On the weekly chart, the price continues to stay below the main trend filter (bearish supertrend); this aligns with a nearly 40% drop since the $0.2864 peak. Trend integrity can be preserved as long as the $0.1689 support is not broken, but general macro tightness (BTC downtrend) could accelerate the downward momentum. For portfolio managers, risk management takes priority over speculative longs in this phase.

Accumulation/Distribution Analysis

The tight range ($0.17-$0.18) shows accumulation phase characteristics, but low activity in the volume profile resembles distribution patterns – especially selling pressure at the upper band. According to Wyckoff methodology, this could be consolidation before a ‘spring’; however, in a bearish context without RSI divergence, distribution risk is high. Holds around $0.1709 suggest buyer accumulation, but bullish reversal is difficult without volume increase. Strategically, wait for confluence to build positions in this phase.

Multi-Timeframe Confluence

Daily Chart View

On the daily, 1 support/3 resistance position (score:71-72) highlights bearish pressure: if $0.1785 resistance (72/100) is not broken, pullback to $0.1709 is likely. MACD negative and position below EMA20 confirms short-term downtrend; RSI at 42 approaches oversold, with local rebound potential. Among 11 strong levels, daily confluence makes $0.1689 the main support.

Weekly Chart View

On the weekly, 2 supports/3 resistances (main $0.1689 support, $0.2864 extended target) indicate the long-term bearish channel. Price structure remains intact while staying below weekly EMA50; however, volume clusters around $0.17 provide holding. Multi-TF confluence requires a $0.1785-$0.21 breakout for upside movement – otherwise, $0.0959 downside target activates.

Critical Decision Points

Main support: $0.1689 (71/100) – Breakout tests $0.1709 and accelerates the downtrend. Main resistance: $0.1785 (72/100), above to $0.21 and ultimate $0.2864. Inflection point $0.17: above bullish, below bearish. These levels should be monitored with DYDX futures market data; R/R ratios around 1:2.5 with upside $0.2358 (30 score), downside $0.0959 (22 score).

Weekly Strategy Recommendation

In Case of Rise

If $0.1785 breakout is confirmed (volume + RSI >50), long positions activate for $0.2358 target. Stop-loss below $0.1689; target RR 1:3. In this scenario, weekly close above $0.18 signals trend reversal. Position traders should wait for confluence in DYDX and other analyses.

In Case of Fall

Shorts target $0.0959 on $0.1689 break; close below EMA20 triggers bearish targets. Stop above $0.1785. Macro BTC pressure supports this scenario – hedging is priority.

Bitcoin Correlation

DYDX shows high correlation with BTC (%0.85+); while BTC is in downtrend at $89,472 (supertrend bearish), altcoin upside is limited. BTC supports $88,311/$86,075 break pushes DYDX to $0.1689; resistance above $89,491 brings relief. If BTC dominance rises, DYDX enters distribution phase – monitor main BTC levels ($91,255 target).

Conclusion: Key Points for Next Week

Next week, $0.1689 hold and $0.1785 test are critical; BTC break below $88k increases altcoin risk. Volume increase + breakout confluence signals long, otherwise short bias. While market structure preserves downtrend, position traders should act with patience and discipline.