🔎 #DYDX Analysis

There are signs of the formation of an upward five-wave cycle according to the Elliott📈 theory. The price started to react to the $1.5 support level and met resistance at $2.5. After the increased volumes appeared, the price tried to gain a foothold above $2.5, but again went lower in the direction of support. At the end of a short trade, the volume appeared again and the price formed the first wave of the cycle. A harmonious butterfly pattern has formed in the form of a W-shaped reversal, which indicates the completion of the coin's correction. Wave I met resistance at $3.5.

The pullback in the form of wave II ended at $2.5. From here, the price began to form the third wave. We have already overcome the local level of $3.5, which was the maximum of the corrective movement. The bearish structure is broken. The target for this wave according to the Fibo levels is approximately at $5.5. For the correct formation, the price should not go significantly below the $3.5 level. In case this happens, the upward structure may be broken and the price will go to the levels below📉.

The MACD indicator has marked a bullish crossover. It is noteworthy that after it there was a volume, which is clearly visible on the 1D timeframe. These are signs of the continuation of growth and the further formation of wave III. According to the ADX indicator, there is a tightness of moving averages, which may signal an imminent increase in volatility. The Adam and Eve figure is at the low of wave II. The pattern was working out on rising volumes and served as a driver for the growth of the third ascending wave.

Both timeframes correlate with each other and confirm the correct development of the upward cycle. As a rule, wave III is the longest of the entire cycle. Given that the cycle is underpinned by a reversal pattern, the price will continue to rise. It is important to monitor the fulfillment of the conditions for the current wave.

If BTC starts to correct, of course, alts will react to this. The reaction can be ambiguous and will make its own adjustments to the development of the current cycle of the coin. On the other hand, the distribution of profit from the first cryptocurrency will go to other coins. Perhaps we are waiting for the alt season. The bullish setup on the coin is ready. I expect the growth to continue.