DeXe (DEXE) has fallen 12% over the past 24 hours, following a broader cooldown for AI-related tokens over the same period.
Price action suggests a rebound remains within reach, but its confirmation depends on several factors aligning, including a shift in positioning in the perpetual futures market, where short interest continues to dominate.
Price structure suggests conditional recovery
On the daily chart, DEXE has entered a well-defined demand zone that has historically triggered upward movements.
Previous reactions at this level have led to rallies, although the most recent attempt failed to break above the $16 mark.
However, the presence of demand does not eliminate downside risk. The price could decline towards the midpoint of the zone, near $11.6 before establishing a stronger base.
On a 4-hour time frame, a near-term recovery depends on a break above resistance at $12.8. Historical price behavior suggests that this level has acted as a pivot, and a successful breakout could accelerate the momentum.
DeXe also continues to respect an ascending trendline that has supported prices on several occasions. The trendline preceded at least three rallies, including two significant advances.
If this structure holds, the asset could see a rally of up to 19%, with $15.3 appearing as a near-term target.
Momentum Indicators Show Early Signals of Reversal
Indicators are starting to reflect a change in market behavior, with signs of accumulation returning after sustained selling pressure.
The Accumulation/Distribution metric increased slightly, indicating a gradual resumption of buying interest despite the recent pullback.
However, overall volume trends remain weak, suggesting that sellers still retain broader control over the market.
At the same time, the Balance of Power (BoP) indicator indicates strengthening buyer dynamics. The BoP, which measures the balance between buying and selling pressure on a scale of -1 to +1, currently stands at 0.39, firmly in positive territory.
A continued rise in this metric could support a break above resistance levels in the near term.
Short dominance in the derivatives market suggests…
Despite improving spot market signals, derivatives data highlights a major hurdle.
The perpetual futures market remains biased toward short positions, increasing the likelihood of continued resistance against rising prices.
Data from Coinglass shows that the interest-weighted open funding rate has fallen into negative territory, currently at -0.0029%. This indicates that the majority of the estimated $234 million in open interest is positioned on the short side.
Unless the funding rate returns to positive territory, sustainable upside may remain limited as sales pressure continues to influence price action in the near term.
Final summary
- Prospects for a rebound are growing as DeXe tests a key demand area, with early indicator support emerging.
- Persistent short positioning in the perpetual market continues to cap upside potential.
