Key takeaways
What Triggered DEXE’s Recent 12% Price Drop?
The decline is due to repeated failures to break through a key resistance level and increased selling pressure.
How do investors from different exchanges position themselves on DEXE?
Bearish sentiment dominates, with 19 out of 20 exchanges showing traders betting on further decline.
DeXe (DEXE) saw a massive 12% price drop on October 9 as data from several exchanges showed investors were betting heavily on the asset’s downside potential.
It is important to note that the main driver of this decline comes from its repeated failure to break through a crucial resistance level. AMBCrypto provides a detailed look at what could be next for DEXE at the end of the week.
Critical resistance fails to break
The decline in DEXE is not new territory for the asset, as it has been facing the same outcome for four weeks in a row.
Source: TradingView
This trend was driven by its repeated failure to break through a key resistance level shown on the chart above. The latest decline coincided with a descending resistance line, which added even more weight to the selling pressure.
Zooming in on the lower time frame, the 4-hour chart suggests that further declines are likely in the near term.
However, the Fibonacci retracement line indicates that the decline could be temporary if the asset manages to hold above the Fibonacci level at $10.74.
If it fails to do so, DEXE could see another sweep towards the lower end of the chart, with the next major support located around $9.96.
Source: TradingView
Liquidity decreases as investors withdraw
A sharp decline in liquidity in the derivatives market has added further pressure to DEXE’s bearish outlook.
Perpetual market investors sold approximately $5.3 million worth of assets, significantly reducing total available liquidity.
Notably, according to CoinGlass data, the outflow was led by Binance investors. The analysis found that the long/short ratio stood at 0.87 at press time, confirming that more investors are selling into the market.
This is important because Binance held approximately $21.97 million worth of DEXE tokens, representing approximately 66% of the total market liquidity. This dominance gives Binance traders greater influence over price movements.
In fact, Binance investors control the majority of DEXE’s total trading volume, implying that they have the most impact on the asset’s price direction.
Binance Investors Are Not Alone
The sale extends to the entire market and is not limited to Binance investors alone.
Data from CoinGlass shows that of the 20 listed exchanges on which DEXE trades, 19 are dominated by bearish investors betting on further price declines.
The only exception is the WhiteBit exchange, where traders remain bullish on DEXE.
If bearish sentiment continues to dominate the market, this could further weigh on the asset’s price, pushing the DEXE trend even lower on the charts.
