DeXe [DEXE] has extended its downtrend with a strong slip, dropping from $18.6 to a low of $15.3. The altcoin has experienced extreme volatility over the past week, with $23 becoming strong resistance and $15 as ideal support.
As of this writing, DEXE traded at $15.6, down 15.2% on the daily charts. Now, it has fallen below 20 and 50-day EMAs, signaling strong bearish pressure.
DEXE traders’ risk appetite fades
After DEXE dropped below $19, traders panicked and turned extremely cautious. As a result, most rushed into the market and closed their positions, thereby putting off potential new investors.
According to CoinGlass data, the altcoin’s Open Interest dropped 14% to $54 million while the volume rose 80%. A drop in OI and a jump in volume suggested increased participation as traders exited.
Usually, increased market exit causes a short-term shock, sending prices crashing. In fact, the altcoin’s Perps Buy Sell Volume saw sellers dominate the market.
The Perps Sell Volume rose to 420k, while the buy volume dropped to 358k. This further confirms our earlier observation that traders turned bearish and closed their positions.
When traders withdraw capital from derivatives, the market weakens, especially in the short term, leading to price drops.
Small whales offer a glimpse of hope
Interestingly, despite the market drop, the spot side is experiencing renewed demand. On the Spot, it seems buyers are accumulating the dip.
According to CoinGlass data, the Spot Netflow turned negative on the 17th of June. At press time, the Netfow was around -$124k, a significant drop from $233k the previous day.
A negative NetFlow suggests that more capital flowed out of exchanges. Thus, more traders bought than sold.
Looking at the demand-side activity, it seems the rise in demand is most likely driven by small whales. As market volatility persisted, small-whale orders jumped significantly, while large-whale orders disappeared.
With NetFlow negative, it seems small whales are still active on the buy side. The group’s demand offers DEXE another chance to rebound from its current slip.
What is the way for the altcoin?
DEXE’s upward momentum has weakened significantly. Looking at the Directional indicators, the altcoin’s -DI jumped to 22 while the +DI dropped to 23.
The negative index is continually at risk and seems on the verge of a crossover. If the -DI crosses the +DI, it will validate the downtrend.
If that happens, the altcoin will breach the $15 support and drop to $13.5. However, if small-whale dip buying works out, $15 will hold and possibly reclaim $ 19.60.
Final Summary
- DEXE dropped 15%, falling from $18.6 to a low of $15.3, as traders flipped bearish.
- Small whales have intensified dip buying, giving the altcoin a fighting chance, raising the odds of holding $15, and targeting $19.