DEXE recorded major losses on the charts as key metrics turned negative
Spot traders have continued to accumulate the asset, despite the broader market’s decline
Over the last 24 hours, DeXe [DEXE] emerged as one of the market’s biggest losers, after a significant decline on the charts. Its losses of over 17% seemed to be driven by a shift in market sentiment.
Despite the selling pressure though, DEXE showed some signs of resistance at press time. All while countering sellers in the market. In fact, AMBCrypto’s analysis also outlined how the asset may perform going forward.
Volume spikes and accumulation trends
The last 24 hour have seen DEXE face significant levels of selling pressure across the market, with the same having a corresponding effect on the market too. This sharp decline was driven by heightened momentum, coinciding with a surge in trading volume.
At the time of writing, DEXE’s volume had risen by 763% to $168.4 million. As per historical data, whenever price declines are paired up with a sharp uptick in volume, it typically alludes to further downside.
Source: Coinglass
Simultaneously, key market metrics have begun to weaken for DEXE too. In fact, both the Open Interest and the Long-to-Short ratio dropped over the past 24 hours – Highlighting this trend.
Open Interest measures the total number of unsettled contracts in the derivatives market. Figures for the same fell by 10.21% to $55.64 million, indicating waning trader commitment.
Analysis further confirmed that the selling pressure has been matched by high selling volume, with the latter still climbing at press time.
Source: Coinglass
On the charts, the Long-to-Short ratio revealed that 50.39% of the total derivatives volume came from short traders.
The rising volume against a price rally, coupled with derivatives volume tilting slightly in favor of long traders, suggested that the market is likely to fall even lower from its press time levels.
Rate holds bullish — Can it last?
And yet, despite the ongoing price decline, market sentiment has remained in bullish territory.
Data revealed that the market’s Open Interest-Weighted Funding Rate has stayed positive, with a press time reading of 0.0035%.
Source: Coinglass
However, it’s important to note that while still in bullish territory, the OI Weighted Funding Rate has been trending lower – A sign of weakening sentiment for DEXE. If the funding rate turns negative, the selling pressure could intensify, pushing the asset even lower.
At the same time, there has been growing accumulation in the spot market. Traders have continued to buy for three consecutive days too.
Source: Coinglass
So far, this group has purchased approximately $400,000 worth of DEXE. A sustained spell of accumulation could help prevent the asset from experiencing a deeper price drop.
Further downside for DEXE?
Finally, an analysis of the Liquidation Heatmap showed that a further decline is more likely for DEXE. Especially as large liquidity clusters remain positioned below the press time price.
One such high-liquidity zone lay just above the $8.5-level, implying that the price could move towards this point since liquidity clusters often attract price action.
Source: Coinglass