DYDX is up 40% in one day, how to trade the market?

2024-10-21, 09:49

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Support and Pressure Levels
- Support: 1.183 USDT
- Pressure level: 1.293 USDT
## Technical Indicator Analysis
RSI: Currently overbought, suggesting a possible retracement in the short term.
## Trading Strategy
### Short term long strategy
- Direction: Long
- Entry Price: 1.213 USDT (current market price)
- Stop Loss: 1.183 USDT (support level)
- Target: 1.293 USDT (pressure level)
Reason and Characteristics.
- Current market sentiment is skewed to the long side and inflows are favorable, indicating increased demand for <a  rel="nofollow noopener noreferrer"  href="/price/dydx-dydx" target="_blank" class="blog_inner_link">DYDX</a>.
- As the RSI is overbought, there may be a pullback in the short term, but entering near the support level reduces the risk.
- The target level is set at the pressure level, which is in line with the technical analysis of the market.
### Short term short strategy
- Direction: Short
- Entry price: 1.293 USDT (entry near pressure level)
- Stop Loss: 1.348 USDT (24 hours high)
- Target: 1.183 USDT (support level)
Reasons and features.
- The RSI indicator is showing overbought, which could lead to a price pullback, so consider shorting near pressure levels.
- Stop Loss is set at the 24-hour high to ensure a timely stop in case of a market reversal.
- The target level is set at the support level, which is in line with the technical analysis of the market and the risk is relatively controllable.
<div class="blog-details-info">
<div>Author: **Icing**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.All investments carry inherent risks; prudent decision-making is essential.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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