DeXe [DEXE] recently experienced a significant 12% price decline, primarily driven by its repeated failure to overcome crucial resistance levels and a pronounced shift towards bearish investor sentiment. This downturn highlights key technical hurdles and a widespread market consensus anticipating further depreciation.
Technical Hurdles and Price Outlook
The core reason for DEXE's recent slump is its persistent inability to breach a critical resistance level, a challenge it has faced for four consecutive weeks. This trend culminated in the latest 12% drop, which coincided with a descending resistance line, further intensifying selling pressure. While short-term technical analysis indicates a likelihood of continued declines, the asset could find temporary support if it holds above the $10.74 Fibonacci level. However, a failure to maintain this position might lead to a further descent towards the next major support point around $9.96.
Widespread Bearish Sentiment and Liquidity Concerns
Exacerbating DEXE's price woes is a substantial drop in liquidity across the derivatives market, with investors selling approximately $5.3 million worth of the asset. Binance traders, who wield significant influence over DEXE's price due to controlling about 66% of its total market liquidity and volume, spearheaded this outflow. This sentiment is not isolated; a comprehensive analysis reveals that 19 out of 20 exchanges show traders overwhelmingly betting on DEXE's continued downside. Only WhiteBit traders are maintaining a bullish outlook, underscoring the market's widespread bearish positioning that is expected to continue exerting downward pressure on the asset's price.
