DeXe Experiences 12% Surge Amidst $350K Inflow – Caution Advised Due to Key Resistance

DeXe (DEXE) has shown significant bullish movement, surging by 12% in the last 24 hours, driven by robust spot accumulation and a considerable $350,000 inflow. However, technical indicators highlight potential resistance ahead, raising concerns among investors about the sustainability of this rally.

Key Takeaways

DeXe’s bullish trend is supported by strong spot accumulation and a remarkable 107% rise in market volume.
The presence of resistance from Bollinger Bands and a bearish Parabolic SAR signal suggests possible selling pressure in the near future.
Despite a recent 12% increase in DEXE’s value, a significant question remains about its ability to recover from last week’s 56% decline.

DeXe Experiences 12% Surge Amidst $350K Inflow – Caution Advised Due to Key Resistance

Investors Rally Behind DeXe

DeXe's recent price gains have been fueled by two consecutive days of accumulation beginning on October 31. During this timeframe, CoinGlass reports a total purchase volume of approximately $350,000, marking the largest buy since October 21. This buy trend has coincided with a significant increase in market volume, which reached $17.10 million, a staggering 107% uplift compared to the previous day.

DEXE spot exchange netflow Source: CoinGlass

The sustained rise in both volume and price signals that buying momentum behind this rally is still strong. However, the asset is now approaching a critical resistance zone.

Resistance Challenge for DeXe

This resistance level is part of a consolidation pattern that has characterized DeXe's trading over the past fortnight, beginning around October 12. Generally, such patterns indicate that investors are acquiring the asset as they anticipate an upward breakout.

A substantial close above this resistance level would suggest that bullish sentiment remains robust, indicating that demand could surpass the supply pressure that has previously caused declines.

DEXE technical indicators. Source: TradingView

Nevertheless, DEXE is currently down 46% from its peak of $46 in September. If the present momentum endures, the asset could trend back toward this previous high, which would serve as a breakeven point for early September buyers who managed to maintain their positions or evade liquidation in derivatives.

Challenges to Continued Rally

The chances of a lasting rally appear to be diminishing based on various technical indicators observed on the chart.

Firstly, the Bollinger Bands, consisting of upper, mid, and lower levels, indicate resistance ahead. Specifically, the upper band often acts as a barrier that compels prices to dip, while the lower band provides a supportive area that can push assets upward. Currently, DEXE is trading near the upper band, suggesting a potential decline could be imminent.

DEXE price chart. Source: TradingView

Moreover, the Parabolic SAR (Stop and Reverse) has flashed another warning signal, with indicators forming above the price. This suggests that selling pressure may be intensifying. If this trend continues, DEXE could remain within its consolidation range without achieving new highs.