Crypto News

DYDX Faces Market Headwinds Amidst Token Unlock Event and Whale Movements

The past week has witnessed a downward trend for DYDX, with a decline exceeding 10%, and recent whale activity has contributed to this negative sentiment, especially following the token unlock event today.

A substantial amount of 150 million $DYDX ($505.5 million), constituting 81.63% of the circulating supply, was unlocked just hours ago. Among this, 83.19 million $DYDX ($280.35 million), equivalent to 46.15% of the circulating supply, was released to investors.

Notably, analyst Lookonchain has identified three whale wallets that received $DYDX from the dYdX Foundation Wallet, subsequently transferring 6.81 million $DYDX ($21.46 million) to Binance. AmberGroup, in particular, executed a transfer of 821,734 $DYDX ($2.56 million) to two wallets.

Spotonchain, another analyst, observed that five addresses and whales reportedly either sold via decentralized exchanges (DEX) or deposited to Binance a total of 6.25 million $DYDX ($20 million). Noteworthy transactions include Whale 0xb0d depositing 5.63 million $DYDX ($18.01 million) to Binance, and QCP Capital (@QCPCapital) depositing 391,035 $DYDX ($1.26 million) to Binance.

Additional movements involve golda.eth (0x6d0) selling 87,174 $DYDX for 280,829 $USDT, while Address 0xFAD sold 66,000 $DYDX for 210,173 $USDC, and Address 0x17b sold 75,000 $DYDX for 237,184 $USDC.

Traders are being advised to exercise caution, especially as supply on exchanges often indicates an intention to sell, while a decrease in supply off exchanges suggests an intent to hold.

Despite these developments, DYDX has experienced continued declines following the token unlock, with its current trading price at $3.05. The market remains dynamic, and investors are urged to stay vigilant amid these fluctuations.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: wedninth/123RF // Image Effects by Colorcinch

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