DYDX Price Risks Breakdown From 31-Day Support as Antonio Juliano Steps Down as CEO
What's Next For DYDX After CEO Steps Down? | Credit: Hameem Sarwar
Key Takeaways
- DYDX has corrected for more than two months and risks a breakdown from a key support area.
- dYdX’s CEO Antonio Juliano stepped down from its position as CEO and moved to president.
- If the DYDX price breaks down, where will it find support, and when can it begin a reversal?
DYDX bounced on April 13 but could not sustain the increase. After trading in a short-term symmetrical triangle, DYDX broke down from it today and is at risk of decreasing below a long-term support.
If the current price holds, dYDX will reach its lower daily close since October 2020 and confirm a breakdown from its horizontal support area. If that happens, how can DYDX find its footing again?
Antonio Juliano Moves From CEO to President
On May 13, dYdX founder Antonio Juliano announced he was stepping down as CEO of dYdX after seven years. However, he is not moving away from the company, rather taking the position of President.
He thanked the team and was appreciative of the journey until now, especially in what dYdX has become since its inception.
Ivo Crnkovic-Rubsamen stepped in as the CEO, after previously serving as the CFO. The DYDX price fell slightly after the announcement and is at risk of breaking down from a 31-day horizontal support area.
DYDX Price Risks Breakdown
The DYDX price chart shows a decline under a descending resistance trend line since March 7. The trend line has caused numerous rejections so far (red icons). The decline culminated with a low of $1.58 on April 13. While the price bounced afterward, it failed to break out from the resistance trend line. Rather, it was rejected on May 10.
Since the bounce, DYDX has traded above the $1.90 horizontal support area, which has existed for 31 days. However, the DYDX price is in the process of breaking down from it today.
The MACD and RSI do not give any signs that could save the potential breakdown. While the RSI previously generated a bullish divergence (green), its trendline is breaking down. The same could happen in the MACD.
In case of a breakdown, the closest support will be at $1.50, a level not reached since June 2023.
Where Will DYDX Bottom?
The daily time frame wave count shows that DYDX is completing a five-wave downward movement (black). It is still unclear if this decline is part of a large five-wave drop (white) or an A-B-C structure (yellow). But, this portion of the decrease is the same in both cases.
In the drop, sub-wave four took the shape of a symmetrical triangle. The DYDX price broke down from it today, validating the wave count.
Giving waves 1 and three (or A and C) a 1:1.61 ratio leads to a low of $1.20. The 1.61 external Fibonacci retracement of sub-wave four gives the same target.
A significant bounce will be likely once DYDX reaches it, the shape of which can determine if the drop was a corrective A-B-C or an impulsive decrease.
Despite this bearish DYDX price prediction, moving above the sub-wave four high (red) at $2.22 will mean the correction is over. Then, DYDX can increase to the next resistance at $2.90.
Further Downside Before Reversal
The DYDX crypto price has corrected for over two months and is at risk of breaking down from a horizontal support area. The wave count supports this breakout, predicting more downside is likely before an eventual reversal.
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