DEXE Plunges 17%: Spot Buying Amidst Market Decline

DeXe [DEXE] experienced a significant price drop of over 17% in the last 24 hours, making it one of the market's biggest losers. This decline appears to stem from a shift in market sentiment.

Volume Spikes and Accumulation Trends

The 24-hour trading volume for DEXE surged by 763% to $168.4 million. Historically, such volume spikes accompanying price drops often indicate further downside. However, spot market traders are exhibiting a contrasting behavior.

Despite the selling pressure, key metrics show mixed signals. Open Interest decreased by 10.21% to $55.64 million, suggesting waning trader commitment. The Long-to-Short ratio reveals 50.39% of derivatives volume originated from short traders. This, coupled with the high volume, generally points to further price drops.

Source: Coinglass

Source: Coinglass

Bullish Funding Rate: A Temporary Trend?

Despite the price decline, the Open Interest-Weighted Funding Rate remains positive at 0.0035%, suggesting bullish market sentiment. However, this rate has been trending lower, indicating weakening sentiment.

Source: Coinglass

A negative funding rate could amplify selling pressure.

Counterintuitively, spot market accumulation continues. Traders have purchased approximately $400,000 worth of DEXE over three consecutive days. This consistent buying could potentially mitigate further price drops.

Source: Coinglass

Further Downside Potential

Analysis of the Liquidation Heatmap suggests a higher probability of further price declines, with significant liquidity clusters below the current price. A notable liquidity zone exists just above the $8.5 level, indicating potential price movement towards this support.

Source: Coinglass

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves significant risk.