DeXe (DEXE) has recently experienced a notable surge in price, consistently maintaining bullish momentum driven by renewed interest from both perpetual and spot market investors. However, a deeper look into the trading dynamics reveals mixed signals, casting doubt on the long-term sustainability of this impressive rally despite the continued positive sentiment. The asset's ability to maintain its upward trajectory hinges on whether current volume trends can reverse to support the ongoing price action.
Investor Interest Fuels DEXE's Rise
DEXE's recent gains are significantly bolstered by growing liquidity within the perpetual trading sector. The asset has seen a substantial inflow of at least $1.7 million through the perpetual market, indicating a strong market bias favoring the bulls. This bullish sentiment is further corroborated by the Open Interest-Weighted Funding Rate, which has remained positive since July 21st, aligning with DEXE's four-week bullish streak. Adding to this momentum, spot investors have begun accumulating DEXE again for the first time in several days, with approximately $26,700 worth purchased on the spot market. Should this accumulation continue, DEXE could potentially reclaim the $10 mark sooner than anticipated, reflecting robust demand from diverse investor segments.
Volume Concerns and Future Outlook
Despite the strong investor interest and price appreciation, the sustainability of DEXE's rally faces significant challenges due to declining trading volume. Trading volume decreased by 34%, falling to $14.5 million—a substantial $4.93 million drop in just 24 hours. Typically, a rise in price accompanied by a decline in volume suggests that the rally lacks broad-based trader support, increasing the likelihood of a price correction. The Accumulation/Distribution (A/D) indicator reflects this cautionary outlook, remaining in negative territory with 2.17 million DEXE in negative volume. However, the A/D indicator is trending upward, hinting at a potential shift into positive territory. If this upward trend in the A/D indicator persists, DEXE could experience a fresh bullish recovery. Conversely, a downward turn would signal a resurgence of selling pressure, potentially leading to a price pullback.
