As dYdX garners massive whale attention, what’s brewing for the token?

–Whales actively accumulated dYdX tokens, as shown by a steady increase in their holdings since March.

-The token’s supply on exchanges declined, and dYdX appeared to be on an upward trend.

Although dYdX [DYDX] appeared to be inactive at first glance, there were strong indications that something significant is brewing beneath the surface. Several noteworthy indicators suggested that the token may be on the verge of an upward trajectory as a specific group of whales were steadily accumulating. 

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Large investors step-up accumulation

An insightful analysis of the supply distribution on Santiment revealed that the whales in the dYdX ecosystem were actively accumulating the token. Specifically, addresses with balances ranging from 100,000 to 1 million dYdXs have steadily increased their holdings since March.

As of now, these addresses collectively hold over 5.6% of the total dYdX supply. The move signals a strong interest in the token among high-value investors, potentially hinting at exciting developments.

Source: Santiment

dYdX on exchanges take a dip

Based on Santiment’s data, the accumulation of dYdX tokens led to decreased exchange availability. The supply on exchange metric revealed a significant influx of the token starting on 10 February, but it declined from 8 March onwards. On 27 February, during the peak of the influx, over 80 million tokens were supplied to the exchanges. 

Source: Santiment

However, as of this writing, the supply on exchanges decreased to around 72.9 million tokens, indicating a visible downward trend. The decline suggests that many investors choose to hold on to their tokens rather than trade them on exchanges.

Social volume and weighted sentiment 

Although the accumulation of dYdX by whales and the decrease in exchange supply are positive indicators, the social volume for the token recently experienced a decline. As of this writing, the social volume decreased to 28, and the weighted average turned negative.

The decline in social activity suggested a lack of discussion and attention around the token and the project. 

Source: Santiment

However, for whales accumulating the token, this is a strategic opportunity to continue accumulation. Also, the accumulation at this stage can be done without attracting too much attention or causing significant price fluctuations.

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dYdX begins an uptrend on a daily timeframe

The daily timeframe chart for dYdX indicated that the token was in an upward trend. The token was trading at about $2.9 at press time, showing a gain of over 6% since the last trading session. Furthermore, the token gained over 16% in the past 72 hours, demonstrating strong upward momentum.

Source: TradingView

The current funding rate for dYdX, as reported by Coinglass, was mostly positive across most exchanges. While no noticeable spikes indicate a high funding rate, traders are optimistic about a potential price increase.