DNX Is Flipping $0.4 Resistance Into Support Yooo everyone, it's been a while since I last posted on TradingView! I've been super busy and very active on X lately. Today, I’m going to analyze a special and unique coin called Dynex.
DNX is the first Quantum Computing coin, capable of computing without limitations. It can solve real-world problems and uses a new mechanism called Proof of Useful Work (PoUW). That’s a brief overview of the fundamental analysis part, but today, I’ll dive deeper into the technical analysis.
1) Over the last 2-3 months, DNX has formed an Elongated Rectangle pattern. As we know, when we see an Elongated Rectangle pattern, the daily volume usually drops by about half, and the price gets stuck within the rectangle, bouncing from bottom to top. This often continues until investors hear some news about the coin, making them excited to jump onboard again.
Recently, we had a major presentation about DNX's future plans and roadmap. Here are a few key highlights from the presentation:
A Venture Capital (VC) firm with $50 million in capital has invested in DNX.
DNX is developing a Silicon Quantum Computing Chip.
Let me remind you, DNX currently has a market cap of only approximately $40 Million. With the addition of $50 Million from the VC, the demand for DNX is likely to rise significantly.
2) On September 26th, DNX attempted to break out from the $0.40 area, but after an instant rise to $0.45, the buyers didn’t have enough strength to flip resistance into support. This was followed by a drop back to $0.30, which is known to be the strongest horizontal support zone. Buyers are heavily protecting this level, and like before, DNX once again bounced significantly from $0.30, reaching up to $0.48.
This time, the volume has increased dramatically, from 300K to 1.5M, indicating that more buyers are on board. With this increase in volume, there’s a higher chance we might finally break through the stubborn $0.40 resistance zone. After forming the recent $0.48 peak, as with every breakout, we need a retest for final confirmation.
Currently, buyers are working to convert the $0.40 rejection zone into support. It’s likely we can hold this level and push the price higher. Additionally, the Fibonacci 0.61 area perfectly aligns with the $0.40 resistance zone, meaning we could see a bounce from $0.40 and finally switch it into support.
3) Target Update: Currently, DNX is expected to reach $0.60 in the coming weeks. The rectangle pattern target also aligns with approximately $0.60. This level is extremely important because it represents a 1-year horizontal accumulation zone around $0.60, which is now acting as resistance.
If we manage to break out from $0.60 and reclaim our previous accumulation zone, holding it for 1-2 weeks, we can aim for the previous ATH of $1.40 and potentially break it as well.
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