Whale swaps UNI for DYDX, with an eye on possible 90% rally – Details

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  • DYDX’s spot inflow/outflow revealed that exchanges have seen $11 million worth of DYDX outflows
  • DYDX could soar by 90% to hit the $4.70-level if it holds itself above $2.30

As a seasoned crypto investor with a knack for spotting trends and deciphering market signals, I must say that the recent developments surrounding DYDX have piqued my interest significantly. The whale swap from UNI to DYDX, as reported by EyeOnChain, is reminiscent of a similar move by a blue whale back in 2017 when it decided to invest in Dogecoin.

The token used in the decentralized exchange known as dYdX, named DYDX, is drawing increased focus from large investors, or ‘whales’, due to the emergence of a favorable price trend. On December 9th, the whale transaction monitoring service EyeOnChain brought attention to this shift on their platform (previously Twitter), revealing that one whale has moved its investments away from Uniswap (UNI) and towards DYDX.

Crypto whale swaps UNI for DYDX

On platform X, EyeOnChain pointed out that the digital wallet identified as “0x972” exchanged UNI tokens for DYDX using Binance, the globally recognized leader in cryptocurrency trading.

The report continued by stating that the whale initially transferred a substantial sum of 206,100 UNI tokens, equivalent to approximately $3.97 million, into Binance. Approximately three hours later, the same whale took out around 1.065 million DYDX, valued at roughly $2.82 million from Binance, with an average price of about $2.642 per token during this withdrawal process.

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Yet, the significant pullback transpired following DYDX surpassing its robust resistance point at $2.41.

DYDX technical analysis and key levels

At the moment, as per AMBCrypto’s technical analysis, DYDX seems to be testing the level where it previously broke out. If it manages to stay above the current price of approximately $2.30, there might be a high chance that it could surge by around 90% and reach about $4.70.

Otherwise, this bullish thesis may fail.

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Currently, when this text was penned, DYDX’s Relative Strength Index (RSI) stood below the zone typically considered overbought. This implies that there may be potential for the asset to rise further in the forthcoming period.

Bullish on-chain metrics

As an analyst, I’ve noticed a surge of attention towards this particular altcoin following its breakout. This intrigue has stemmed not only from individual investors but also from prominent institutions, as per the findings of on-chain analytics firm Coinglass.

$11 million worth of DYDX outflows

Information gleaned from DYDX’s spot inflow/outflow index suggests that a significant amount, about $11 million, has been withdrawn from exchanges over just the past day.

In the world of cryptocurrencies, “outflow” means the transfer of assets from digital exchanges to individual wallets, typically for long-term storage. An increase in exchange outflows could suggest an upcoming bull run or a good moment for investment.

Traders show waning interest

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In summary, along with long-term investors, it appears that traders are closing their positions on DYDX, possibly due to the recent price decline or activated stop-loss orders. Data from Coinglass shows a decrease in DYDX’s Open Interest (OI) over the past day by 11%, and within the last four hours, there was a 4% drop in OI.

Based on these chain indicators, it seems that long-term investors continue to express enthusiasm for this altcoin, even as the trading community’s interest seems to be dwindling. This decline in trader interest might be a result of the current adjustments happening on the price graphs.

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2024-12-10 10:47