DYM, the native token of the modular blockchain project Dymension, risks falling to its lowest price. This development comes after a 95% decline from its all-time high.
At press time, the Dymension crypto price wobbles around $0.42. Amid this decline, DYM’s trading volume has surged to the highest point since Jan. 25.
Rising market participation suggests either accumulating or succumbing to panic selling. Here’s why DYM’s price is unlikely to recover from its decline.
DYM Volume Rises, but Struggle Continues
On March 17, the DYM’s trading volume was less than $90 million. However, the same metric has risen to $257.67 million as of this writing.
From a trading standpoint, increasing volume alongside a rising price reinforces the trend, indicating a potential for further gains.
On the other hand, a price surge with declining volume suggests weakness. However, DYM presents an entirely different scenario, especially as the trading volume has increased with the altcoin’s value declining.
This rise in volume and drop in the Dymension crypto price indicate selling pressure. If this pressure continues, the token’s value is unlikely to trade higher.
Instead, the cryptocurrency could drop to its all-time low of $0.28 seven days ago.
From a technical perspective, the daily chart shows that DYM has broken above a key descending trendline.
The falling trendline appeared after DYM’s price failed to rise above $2.18 on Dec. 17, 2024, which later led to a 70% correction this year.
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While the price has risen above the swing low, the Awesome Oscillator (AO) reading has remained negative. This reading indicates bearish momentum around the cryptocurrency.
If the trend continues, the Dymension crypto value could fail to trade higher.
DYM Price Analysis: Ready to Go Lower
Another look at the daily chart shows that DYM’s price, at $0.42, could drop. One of the reasons for this is the position of the Chaikin Money Flow (CMF), which measures the level of accumulation and distribution around the asset.
When the CMF is above the zero signal line, it means rising buying pressure, which could increase the price. However, the CMF has dropped to the negative region in this case, indicating rising selling pressure.
The dots of the Parabolic Stop And Reverse (SAR) is also above the Dymension crypto price, indicating resistance. Should this remain the same, DYM could slide to $0.27 — its all-time low.
If selling pressure increases, the altcoin’s value could reach a new low, potentially dropping below $0.20.
Alternatively, if demand for the token increases, the cryptocurrency could jump to $0.86. In a highly bullish scenario, the token’s value could retest the $1 mark.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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