dYdX suffers hack and token turns bearish, still a good buy?


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dYdX exchange tweeted about a “security issue with a newly deployed smart contract.” This news seems to have brought an effect on the native token of the platform as well, which is down by nearly 6% in the last 24 hours. 

As per data from CoinMarketCap, the trading volume of the native token of the exchange, DYDX, is 178 million USD, down by 7% in the last 24%.  

The dYdX exchange allows users to leverage trade, which was raised to 125x by Binance as per TheCoinRise, using smart contracts. You can satiate your questions regarding smart contracts and how they work using TheCoinRise’s guide. 

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The current market rank of the token is 130, a result of a 6.14% drop in the market cap. The price trend of the coin has been extremely bullish in recent weeks, rising from $3 to $27.8 in the month of September. The token DYDX has dropped by 56% from this all-time high and is currently trading on Binance at $12.22.

DYDX technical setup and analysis on the 4-hour chart

According to the 4-hour chart by TradingView, the 50-day and 100-day Moving Averages are progressing above the price chart, which means that the prices are not as bullish as they were in the past few weeks. 

The prices broke down from the lower end of the Bollinger Bands and continue to progress in the lower end of the Bands, indicating a surge in selling pressure.

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DYDX price analysis

DYDX price chart by TradingView

The RSI levels are also dropping down and trying to enter the overbought region. The gradient is also negative, and traders can expect lower prices for today.

The MACD indicator shows a bearish scenario with the signal line (orange) breaking above the MACD line (blue). This is called a bearish divergence and is indicated by the bearish MACD histogram filled with red bars.

DYDX price analysis

DYDX price chart by TradingView

The dYdX exchange issue put 700 accounts and funds worth $2M at risk. Although, in a series of tweets, the exchange revealed that “NO FUNDS WERE LOST AND ALL FUNDS ARE SAFE.”

In a similar situation reported earlier this year by TheCoinRise, a BSC DeFi project was hacked for $31 million. Due to the lack of regulations and budding technology, hacks and frauds are still prevalent in the crypto industry. TheCoinRise will explain how to avoid crypto exit scams in case you’re stuck in one.

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