Important Highlights
What caused DEXE’s recent 12% price drop?
The decrease was a result of continuous struggles to surpass a crucial resistance level and increased selling pressure.
How are investors positioning themselves on DEXE across various exchanges?
The majority of investors are bearish, with 19 out of 20 exchanges indicating a belief in further downside potential.
DeXe [DEXE] saw a significant 12% price decline on October 9th, with data from multiple exchanges showing a bearish sentiment prevailing among investors.
The primary reason behind this decline is the repeated failure to break through a key resistance level. This article delves into what could be on the horizon for DEXE as the week progresses.
Struggle to Break Critical Resistance
The recent drop in DEXE’s price follows a pattern seen over the last four weeks, characterized by the inability to breach a crucial resistance level as depicted in the chart below. The latest decline coincided with a descending resistance line, exacerbating the selling pressure.
Source: TradingView
Further analysis on the 4-hour chart suggests a continuation of the downtrend in the short term. However, the Fibonacci retracement line indicates a temporary decline if DEXE manages to hold above the Fib level at $10.74. Failure to do so could lead to further downward movement, with the next significant support at around $9.96.
Source: TradingView
Decline in Liquidity as Investors Exit
A significant decrease in liquidity in the derivatives market has added more pressure to the bearish outlook on DEXE. Perpetual market investors have sold approximately $5.3 million worth of the asset, reducing the overall available liquidity.
Data from CoinGlass indicates that Binance investors led the outflow, with a Long-to-Short Ratio of 0.87, signifying more selling activity in the market.
Binance holds a considerable amount of DEXE tokens, representing a majority of the market liquidity, giving Binance traders significant influence over the asset’s price movements.
The dominance of Binance investors in DEXE’s trading volume implies their substantial impact on the price direction of the asset.
Widespread Bearish Sentiment
The market-wide sell-off extends beyond Binance investors, with data from CoinGlass showing that 19 out of 20 exchanges are dominated by bearish sentiment, anticipating further price declines.
The exception is WhiteBit exchange, where traders maintain a bullish stance on DEXE.
Continued bearish sentiment in the market could further impact DEXE’s price, driving its trend lower on the charts.
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