Starting a longer term position in DYDX (one of the most liquid, leading decentralized exchanges)
Traded up on the news that Binance was banning/placing more restrictions on China, makes me think that users will move to other platforms, trading on a decentralized exchange is probably going to be a good option in the future when more restrictions/regulation happens.
Although that move got faded, it’s still trading in a nice price range right now between 25.057 resistance and 22.216 support.
The DYDX decentralized exchange platform is built on Layer 2 ZK-Rollup technology based on the Ethereum blockchain, which give it the security of Ethereum smart contracts combined with no gas fees for users while trading their cross-margined Crypto Perpetual Contracts. Great that this can solve many of the problems for users in crypto restricted regions by moving their trading to a DEX that has good security and privacy. Standard Spot and Margin crypto markets are also still accessible on their L1 ETH based protocol. Backed by global institutional investors such as venture capitalist Paradigm among other angel investors and leading funds.
I see that it has good room for growth in the future not only based on their fundamentals, but also that the technical setup of their chart also looks great, which makes me very interested in a larger long term position.
Sample Trade Plan:
1- 3 Month Target: @ 30.047 (+35% profit from 22.216 starter)
Resistance: @ 25.057 (+13% profit from 22.216 starter)
Support: @ 22.216 (starter on position with room to add up to 21.092 support below)
Bottom Range Support: @ 21.092 (-4.6% drawdown from 22.216)
If trading on short term leverage up to 25.057 resistance, will have more than made back the capital spent, and can switch to spot/lower leverage to hold position long term comfortably above that 30 target.
Short term profits funding long term position.
TL; DR Basically cool project + Technicals look good + Scalable L2 will be compatible with new crypto innovations in the future -> Interest me in taking a long term position along with ETH for some diversity in DeFi exchanges