Dymension (DYM) Price Eyes Further Surge After Recovery From Record Low

Key Takeaways

• Although DYM is trading within a descending triangle—typically a bearish setup—it’s flirting with the upper trendline.
• The RSI and MFI are rising, indicating growing buying pressure, while the MACD has flashed a bullish crossover.
• If momentum holds, DYM could break the $0.42 resistance and rally toward $0.76, with potential to climb even further.

On April 7, DYM, the native token of modular blockchain project Dymension, reached an all-time low of $0.22. Since then, the Dymension token price has increased by 20% while trading at $0.26.

This increase comes after the cryptocurrency reached oversold levels, triggering a change in trend. While the broader market condition is not yet completely bearish, DYM might experience a further upswing.

DYM Recovers

On the daily chart, the Dymension token price is trading within a descending triangle. A descending triangle is a bearish chart pattern that typically signals a potential breakdown to the downside, especially when it forms during a downtrend.

However, it can also form as a continuation or reversal pattern in an uptrend. In DYM’s case, the cryptocurrency failed to drop below the horizontal support, which could have lead to a new all-time low.

Instead, DYM’s price is fliring the upper falling trendline, indicating that bulls are willing to help the altcoin break to higher values. A look at other indicators also suggests a similar potential.

For instance, the daily chart’s Relative Strength Index (RSI) was oversold on April 7 following the new low. But as of press time, the RSI reading has increased, indicating rising bullish momentum.

Like the RSI movement, the Money Flow Index (MFI) reading has also increased. While the MFI is yet to surpass the midpoint, the rising rating indicates that the market is loading up the dip on DYM.

Momentum Stays Bullish

If sustained, the Dymension token price could hit a higher value. In line with this thesis, the Moving Average Convergence Divergence (MACD) reading has turned positive.

On the same MACD, CCN observed a bullish crossover. A bullish crossover occurs when the shorter Exponential Moving Average (EMA) rises above the longer one.

The 12 EMA (blue) has crossed over the 26 EMA (orange). Should this trend remain the same, the bullish momentum and crossover could lead the Dymesion token price to rise much higher than $0.26.

DYM Price Analysis: Rally to Extend

Considering the signals from several indicators mentioned above, the Dymension token price could evade another correction. As it stands, DYM is likely to breach the resistance at $0.42

However, to validate this movement, bulls must keep up the pressure and ensure that bears do not take over. If that happens, the next target for DYM could be a rise to $0.76.

Once validated, the cryptocurrency could target higher values with possible targets at the 0.618 golden pocket ratio. However, if the token fails to breach the $0.42 resistance, this rise to $0.76 might not happen.

In that scenario, DYM’s market value could decline to $0.20.