DYDX entered the new year with a constructive tone, reflecting the broader market’s gradual strengthening since January 1. After approximately two weeks of sustained gains, price action now appears to be approaching a decision point, where the market may either attempt to extend the existing upward move or allow for a healthier corrective phase before the next directional expansion.

DYDX technical analysis

 

DYDXUSD - 4-Hour Time Frame

 

DYDX, in line with most of the broader market, has appreciated since the start of the year, advancing by nearly 30% over the past two weeks. Price has recently begun rotating around the $0.20 area, where it is encountering its first notable resistance zone. This region has already produced three rejections, reinforcing its importance as a key technical level for near-term price development.

Within the same price band, the Fibonacci 0.236 retracement level at $0.213 further strengthens this resistance area. As a result, any continuation of the current upward structure would likely require price to move above this zone and demonstrate acceptance, potentially allowing it to function as support rather than resistance.

On the downside, the primary support area sits just below the current price, corresponding to the zone from which the most recent impulsive upward move originated. A return to this area could prompt a more pronounced reaction from buyers, particularly as it closely aligns with the 50% Fibonacci retracement near $0.198.

If this support fails to hold, price action may extend lower to sweep liquidity beneath that range and potentially test the second support zone below. This area may attract increased buying interest; however, it should be noted that such a move would already represent a meaningful disruption to the current market structure. In that scenario, any rebound from the second support zone could result in the formation of a lower swing high, rather than a continuation of the existing bullish structure.

DYDX price target

If DYDX is able to generate sufficient momentum and break above the resistance range between $0.207 and $0.216, attention would naturally shift to the next major resistance zone located higher. This area lies between $0.248 and $0.253 and overlaps with the 0.382 Fibonacci retracement at approximately $0.249, making it a logical area for increased market interaction and potential volatility.

Should price action extend beyond this zone at a later stage, further upside development would likely depend on the market’s ability to remain above it, rather than quickly rotating back below. Beyond that, the next technical reference points align with higher Fibonacci levels at 0.5 near $0.278, 0.618 around $0.307, and 0.786 close to $0.349.