dYdX V4 blockchain prepares for public testnet, native token loses edge
- dYdX V4 blockchain will be made available on the public testnet by the end of July.
- DYDX commences a new bear run, putting sellers back in control.
Leading perpetual contracts trading platform dYdX [DYDX] announced the completion of the third of five milestones toward the eventual launch of its dYdX V4 blockchain.
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First announced in June 2022, the dYdX V4 blockchain is a standalone blockchain currently being developed based on the Cosmos SDK and Tendermint Proof-of-stake consensus protocol. dYdX V4 is being designed to feature a fully decentralized, off-chain orderbook and a matching engine capable of scaling orders of magnitude more than any existing blockchain can support.
On what comes next, the perpetuals trading platform noted further that Milestones 4 and 5 would involve the launch of a public testnet by the end of July, an increased number of validators testing the product, and an eventual launch on the mainnet by the end of September.
DYDX has a mind of its own
While the general cryptocurrency market witnessed consolidation in the last week, DYDX traded downwards. As a result, the token’s value fell by 6% during that period. At press time, the alt traded at $2.34 per DYDX token, data from CoinMarketCap revealed.
An assessment of the token’s price movement on a daily chart revealed the commencement of a new bear cycle on 26 March. This was when the Moving average convergence/divergence (MACD) line intersected with the trend line in a downtrend. The indicator has since been marked by red histogram bars.
The commencement of a new bear cycle coincided with the sellers regaining control of the DYDX market and overpowering the buyers. The asset’s Directional Movement Index showed the Negative Directional Indicator (red) at 18.85. It rested above the Positive Directional Indicator (green) at 15.10. This showed that selling pressure outweighed buying momentum in the DYDX market at press time.
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Further, positioned below their respective neutral points, the alt’s key momentum indicators pointed at dwindling buying pressure. As of this writing, DYDX’s Relative Strength Index (RSI) was 46.61. Inching closer to the oversold territory, the alt’s Money Flow Index (MFI) sat at 31.95.
The month so far has witnessed a decline in DYDX’s Open Interests. When the open interest in a cryptocurrency asset falls, it generally indicates a decline in market participation or trading activity.