DEXE price prediction: Can bulls reclaim KEY support after a 7.5% drop?

DeXe [DEXE] extended its bearish streak for a third straight day, reinforcing selling pressure, as the asset has lost its grip on the key $15.40 support level. 

At press time, DEXE was trading at $13.61, down 7.50% over the past 24 hours. Meanwhile, traders and investors have shown strong interest in the asset’s movement, as evidenced by DEXE’s trading volume, which surged 40% to $19.61 million.

Another factor that appears to be potentially contributing to DEXE’s decline is the activity of crypto exchange LBank. Recently, a crypto analyst shared a post on X, noting that LBank dumped a massive $1.68 million worth of DEXE tokens on Binance and may continue selling more tokens in the coming days. 

Now, the question is, what’s next for DEXE? Will the price continue to decline, or is a reversal possible?

DEXE chart eyes another 25% fall, but key level to watch 

According to the daily chart on TradingView, DEXE’s short-term outlook appears bearish, as it has lost the key $15.40 support level. The asset recently broke above this level and continued its upward trend; however, it eventually fell back below it, shifting market sentiment in favor of the bears.

Based on the current price action, if DEXE remains below the $15.40 level, it could continue its downward trajectory. If that happens, the asset may experience a further decline of 25%, potentially reaching the $10.26 level in the coming days.

However, a price recovery would only become likely if DEXE reclaims the $15.40 level. If it does, the current bearish thesis could be invalidated.

As of now, the Average Directional Index (ADX) has risen to 38.41, well above the key threshold of 25, indicating that DEXE is experiencing a strong trend. Furthermore, this value reinforces the asset’s ongoing bearish momentum. 

Mixed sentiment among traders and investors 

While examining derivative data, it was observed that traders and investors currently have mixed sentiment toward DEXE.

Despite the price decline and the breakdown of a key support level, intraday traders continue to bet on long positions, according to data from CoinGlass. At press time, DEXE’s Long/Short ratio stood at 1.1487, indicating that traders remain bullish and are favoring long positions over shorts.

Meanwhile, $13.30 on the downside and $13.90 on the upside have emerged as the two major liquidation levels over the past 24 hours. In fact, traders have built $139.90K worth of long leveraged positions at the $13.30 level and $79.57K worth of short leveraged positions at the $13.90 level, indicating bulls domination. 

However, investors and long-term holders appear to be doing the opposite of what intraday traders are doing. Data from DEXE’s spot inflow/outflow metrics reveals that over the past 24 hours, $410K worth of DEXE tokens have been transferred to exchanges, signaling potential selling pressure. 

Final Summary

• DeXe [DEXE] has declined 7.50% and fallen below a key support level. Price action suggests that another 25% drop could be on the horizon.
• Despite continued price decline, trader sentiment remains bullish, with many betting on long, while investors appear to be following the trend by selling their holdings.