Following a significant uptrend that led DeXe [DEXE] towards its highest point in three years, reaching close to $21, the coin experienced a sudden drop of over 30% in a single day, resulting in heightened volatility. Traders aiming to capitalize on these fluctuations must stay informed of the latest developments.
Targeting the Key Support Level of $14.5
In April 2024, DEXE failed to break out bullishly from a symmetrical triangle, entering a prolonged bearish phase that saw a decline of approximately 60% until hitting a bottom at the critical support level of $7 in December. This decline paved the way for a remarkable 190% surge, propelling DEXE to $21, supported in part by the project’s newly revealed roadmap.
Nevertheless, the coin faced significant profit-taking pressure at the $21 resistance, leading to a substantial double-digit drop in a single day. Currently trading around $15, DEXE has slipped below both its 20-day and 50-day EMAs based on the daily chart.
Despite the recent pullback, DEXE remains above its 200-day EMA, which is situated around the $11 mark. Notably, the immediate support level now stands in the range of $13-$14. Should the bulls defend this support successfully, it could prevent further downside and potentially pave the way for a resurgence to higher levels.
A potential recovery from the immediate support level could see DEXE retesting the $17 level near the 20-day EMA. The daily Relative Strength Index (RSI) hovers close to 40, indicating a bearish sentiment. If buyers fail to secure a close above the 50-level, the prospects of an imminent rally appear limited.
Mixed Sentiment Reflected in Derivatives Data
According to the latest Coinglass data, DEXE’s trading volume in derivatives surged by over 180% to reach $153.43 million in the past day. Meanwhile, Open Interest saw a decline of approximately 6.74%, hinting that some traders may be closing or reducing their positions following the recent market downturn.
Although the 24-hour Long/Short ratio stands at around 0.92, the Binance DEXE/USDT ratio indicates 1.51, signaling a more optimistic outlook among Binance traders. However, the overall near-parity ratio suggests a cautious sentiment as both bullish and bearish factions compete for dominance.
If buyers successfully defend the $14.5 zone (around the 50-day EMA), DEXE could witness a recovery phase and potentially initiate another rally towards its multi-year peak of $21. Conversely, a breach below $14.5 could trigger a corrective move dragging DEXE closer to its 200-day EMA at approximately $11.
In making informed investment decisions, staying attuned to broader market sentiment remains crucial. Despite the recent volatility, DEXE’s fundamental strength and roadmap continue to underpin a positive long-term outlook, offering short-term traders opportune entry points in the days ahead.
Disclaimer: The information provided is the writer’s opinion and should not be construed as financial, investment, trading, or any other form of advice.