DeXe [DEXE] experienced a significant surge in buying activity, propelling it close to its highest level in three years, reaching nearly $21 this week.
However, the cryptocurrency recently witnessed a steep drop of over 30% in a single day, leading to heightened volatility in the market. Traders are now aiming to take advantage of these rapid price fluctuations. Here are the key considerations to keep in mind.
Focusing on the $14.5 Support Level
Following a failed attempt to break out from a symmetrical triangle back in April 2024, DEXE entered a prolonged bearish trend, shedding around 60% of its value until finding support at $7 in December.
This low served as a launching pad for a 190% rebound, propelling DEXE to $21 recently, partly driven by the unveiling of the project’s roadmap.
Nevertheless, the $21 resistance led to significant profit-taking, causing DEXE to plummet by double digits within a single day.
Currently trading around $15, DEXE has dipped below both its 20-day and 50-day EMAs on the daily chart.
Despite the retracement, DEXE remains above its 200-day EMA, which was around the $11 mark. The immediate support level now hovers in the range of $13 to $14.
If the bulls manage to defend this support level, they could avert further decline and potentially pave the way for a retest of higher price levels.
A bounce from the immediate support could see DEXE testing the $17 mark near the 20-day EMA. The daily Relative Strength Index (RSI) is nearing 40, indicating a bearish outlook.
Thus, if buyers struggle to close above the 50-level, the likelihood of a short-term rally appears slim.
Divergent Sentiment in Derivatives Data
According to the latest Coinglass figures, DEXE’s derivatives trading volume skyrocketed by over 180% to $153.43 million over the past day.
At the same time, Open Interest dropped by approximately 6.74%, hinting that some traders might be unwinding or scaling back their positions following the recent market downturn.
While the 24-hour Long/Short ratio stood at about 0.92, the Binance DEXE/USDT ratio indicated a bull-favoring ratio of 1.51, reflecting optimism among Binance traders.
However, the broader near-parity ratio indicates a cautious sentiment as both bullish and bearish perspectives vie for dominance.
If buyers can uphold the $14.5 support level (near the 50-day EMA), DEXE could see a rebound and potentially aim for another upswing toward its multi-year high of $21.
Conversely, a breach below $14.5 could trigger a correction, pushing DEXE towards its 200-day EMA close to $11.
Considering broader market sentiment before making investment decisions is crucial.
Given DEXE’s positive fundamentals and roadmap indicating a bullish long-term outlook, the days ahead could present attractive entry points for short-term traders.
Disclaimer: The information provided should not be considered as financial, investment, or trading advice; it reflects the writer’s personal opinion.