The last few days have been tough for the crypto market. Since Sunday, the 21st of June, a cumulative figure of around $3.3 billion worth of leveraged positions has been liquidated.
Tuesday, the 23rd of June, saw the biggest volume of liquidations, with nearly $787 million longs wiped out across the market. Even so, the magnitude of the liquidations wasn’t as large as the ones that came earlier in the month.
Understandably, the Crypto Fear and Greed Index sat at a miserable 17. Amidst this chaos, DeXe [DEXE] was one of the few altcoins that presented a bullish long-term picture.
DeXe prices rallied while most crypto assets faced pain
In a recent report, AMBCrypto noted that whale accumulation and network activity at ATHs were signs of confidence in the ecosystem. The price advance in June has been an expression of this bullish conviction too.
The 1-day timeframe highlighted a firmly bullish price structure for the altcoin. The advance from $9.81 to $24.49 in May was followed by a retracement into the golden pocket between the $12.95 and $15.42 retracement levels.
This pullback has been bought up, and at the time of writing, DEXE was in a position to challenge the $24.49 highs once again.
The short-term rejection on Thursday, the 25th of June, was not a sign of weakness. Instead, the retest of the $20-$21 support area, which had been a local resistance earlier in the month, was encouraging.
The MACD’s bullish crossover highlighted upward momentum, and the A/D indicator signaled buying pressure during the recovery from below $15.
Traders’ call to action – Cautiously bullish
The funding rate fell to healthy levels after peaking earlier in the week. The Open Interest also slid lower in recent days, but the funding rates have remained positive.
The consolidation above $20 and the slowdown in OI and funding rate meant that DEXE bulls have had a chance to pull themselves together. Simply put, the price might not be overextended just yet.
Enthusiastic bullish sentiment and positioning have quietened down too, making space for the next upward move.
The cumulative short liquidation leverage overhead, towards the $24 price level, was much higher than the cumulative long liquidation leverage below the press time market price. This could be another sign that a move towards the $25.5 local highs could occur soon.
Whether a bullish continuation occurs remains to be seen, but the evidence at hand revealed that there may be potential.
Final Summary
- The long-term price trend of DeXe has been bullish, and its fundamentals have also been strong.
- Liquidation map hinted that a move higher to squeeze leveraged short positions was a possibility in the coming days.