DEXE nears KEY support as $5.3M sell-off triggers price drop!

Key Takeaways

What triggered DEXE’s recent 12% price drop? 

The decline was driven by repeated failures to break a key resistance level and intensified selling pressure.

How are investors across exchanges positioning themselves on DEXE? 

Bearish sentiment dominates, with 19 out of 20 exchanges showing traders betting on further downside.

DeXe [DEXE] saw a massive 12% price decline on the 9th of October, as data across multiple exchanges showed that investors are betting heavily on the asset’s downside potential.

Critically, the key driver behind this decline stems from its repeated failure to breach a crucial resistance level. AMBCrypto provides a detailed look at what could be next for DEXE as the week winds down.

Critical resistance fails to break

The decline for DEXE isn’t new territory for the asset, as it has faced the same outcome for four consecutive weeks.

Source: TradingView

This trend has been driven by its repeated failure to break through a key resistance level marked on the chart above. The latest drop coincided with a descending resistance line, which added further weight to the selling pressure.

Zooming into the lower time frame, the 4-hour chart suggests that more declines are likely in the short term.

However, the Fibonacci retracement line indicates that the fall could be temporary if the asset manages to hold above the Fib level at $10.74.

If it fails to do so, DEXE could see another sweep to the lower end of the chart, with the next major support resting around $9.96

Source: TradingView

Liquidity drops as investors exit

A sharp drop in liquidity across the derivatives market has added more pressure to DEXE’s bearish outlook.

Perpetual market investors sold approximately $5.3 million worth of the asset, significantly reducing the total available liquidity.

Notably, the outflow was led by Binance investors, according to data from CoinGlass. The analysis revealed that the Long-to-Short Ratio stood at 0.87, at press time, confirming that more investors are selling in the market.

This is significant, as Binance held around $21.97 million DEXE tokens, representing roughly 66% of total market liquidity. This dominance gives Binance traders greater influence over price movements.

In fact, Binance investors control the majority of DEXE’s total trading volume, implying they have the most impact on the asset’s price direction.

Binance investors aren’t alone

The sell-off is market-wide and not limited to Binance investors alone.

CoinGlass data shows that out of the 20 listed exchanges where DEXE is traded, 19 are dominated by bearish investors betting on further price declines.

The only exception is WhiteBit exchange, where traders remain bullish on DEXE.

If bearish sentiment continues to dominate the market, it could further weigh on the asset’s price, pushing DEXE’s trend even lower on the charts.