dYdX V4 blockchain prepares for public testnet, native token loses edge

• The dYdX V4 blockchain will be made available on the public testnet by the end of July.
• DYDX starts another bear run, giving the sellers back control.

Leading trading platform for perpetual contracts dYdX [DYDX] announced the completion of the third of five milestones towards the eventual launch of their dYdX V4 blockchain.

Read DYDX’s price estimate 2023-24

First announced in June 2022 dYdX V4 blockchain is a standalone blockchain currently being developed based on Cosmos SDK and Tendermint Proof-of-stake consensus protocol. dYdX V4 is designed to have a fully decentralized off-chain order book and a matching engine capable of scaling orders of magnitude more than any existing blockchain can support.

As for what comes next, the Perpetuals trading platform further noted that milestones 4 and 5 will 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 overall cryptocurrency market witnessed consolidation over the past week, DYDX was trading lower. As a result, the token’s value fell by 6% during that period. At press time, everything was trading at $2.34 per DYDX token, data from CoinMarketCap revealed.

An assessment of the token’s price movement on a daily chart revealed the start of a new bear cycle on March 26. This was when the moving average convergence/divergence (MACD) line crossed the trendline in a downtrend. The indicator has since been marked with red histogram bars.

Source: DYDX/USDT on TradingView

The start of a new bear cycle coincided with the sellers taking back 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 direction 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 alts’ key momentum indicators pointed to waning buying pressure. At the time of writing, DYDX’s Relative Strength Index (RSI) was 46.61. After getting closer to the oversold territory, the alts Money Flow Index (MFI) sat at 31.95.

The month so far has witnessed a decline in DYDX’s open interest. When open interest in a cryptocurrency asset falls, it generally indicates a decrease in market participation or trading activity.

Source: Coinglass