Important points
What’s driving DeXe’s recent price increase despite last week’s significant decline?
Strong spot accumulation and a 107% surge in market volume fueled DeXe’s bullish momentum.
What are the technical signals that signal caution for DeXe’s continued rise?
Resistance from the Bollinger Bands and a bearish parabolic SAR signal indicate potential selling pressure going forward.
Dexes [DEXE]Bullish trends remain dominant in the market as the asset rose 12% in the past 24 hours.
Despite the continued rally, investors remain skeptical whether the stock can recover from the steep 56% drop recorded last week.
Spot investors support the rally
DeXe’s recent rally follows two consecutive days of gains from October 31st to the time of writing.
During this period, Coinglass reported that purchases totaling approximately $350,000 were made, making this the largest purchase since October 21st.
Interestingly, this coincided with a significant jump in market trading volume, totaling $17.1 million, an increase of 107% over the past day.
Source: Coin Glass
The continued rise in both volume and price suggests that upward momentum remains strong, and the asset is likely to continue rising.
However, this bullish momentum is now being tested as the asset faces a major resistance zone.
Resistance lies ahead for DeXe
This resistance forms part of a consolidation pattern in which the asset has been trading for the past two weeks, starting around October 12th.
A consolidation pattern like this typically indicates investors are accumulating assets in preparation for an upside breakout.
A close well above this level suggests that bullish momentum remains strong and that demand may outweigh the supply pressures that previously drove the asset lower.
Source: TradingView
However, DEXE is still down 46% from its September high of $46, suggesting the asset is likely to return to that level if current momentum continues.
Notably, for early buyers in September, a rally to this level would be a break-even point for investors who have held spot positions or avoided liquidating derivatives.
odds of rebound
According to several technical indicators on the chart, the chances of a continued rally are increasing.
First, the Bollinger Bands, which are made up of the upper, mid, and lower prices, are showing resistance. The upper band often acts as a barrier that pushes the price down, while the lower band provides a support zone that pushes the asset up.
At the time of writing, DEXE is hovering in the upper band, indicating that a decline may be near.
Source: TradingView
Notably, parabolic SAR (stop and reverse) also gives off another warning signal. A dot is currently forming above the price, indicating increasing selling pressure.
If this situation continues, it means that DEXE may sustain itself without setting new highs.