DEXE Plummets to $4.69 as Momentum Exhaustion Signals Capitulation Phase
Данные:
- Market Structure Shifts Lower
- DeXe’s Trust Management Platform Volumes Surge %+ And Weekly Distributions Near ~$100k
- Momentum Drops to 32.48 – Matching Historical Capitulation Zones
Market Structure Shifts Lower
DEXE has dropped 31.5% this month as of October 29, wiping out almost 65% of value since the yearly peak, which could offer an opportunity on pricing some of the relief rally to the prior highs. The monthly RSI has fallen to an oversold 32.48, which corresponds to the regions of those readings associated with primary market bottoms. The price is once again challenging the $4.35-per-DEXE support, a break of which will put the all-time low on the radar for the token. The monthly ADX has risen to 27+ which suggests building on the aggressive post-sell signal trend to the downside.
DeXe’s Trust Management Platform Volumes Surge %+ And Weekly Distributions Near ~$100k
DeXe (DEXE) was among this week’s best performing altcoins until early Friday, surging 11.7% following the successful launch of its public staking system on Uniswap around 1:20 pm UTC-time November 14th. However, the early morning rally to $4.83 reversed sharply and continued fading into the weekend. DeXe’s fallback this week also followed the broader altcoin rally momentum slipping coming off a Zcash inspired influx that briefly carried the token. DEXE spiked +32% to $6.98 Wednesday and nearly tripled in price from 10-days prior on November 11th, before the rally fizzled and DeXe capitulated.
| Metric | Value |
|---|---|
| Asset | DEXE (DEXE) |
| Current Price | $4.70 |
| Weekly Performance | -11.33% |
| Monthly Performance | -31.51% |
| RSI (Relative Strength Index) | 32.5 |
| ADX (Average Directional Index) | 27.7 |
| MACD (MACD Level) | -0.56 |
| CCI (Commodity Channel Index, 20-period) | -86.19 |
Momentum Drops to 32.48 – Matching Historical Capitulation Zones
The Relative Strength Index (RSI) is currently 32.48 on the daily chart, indicating that the token is oversold. It wasn’t too long ago that the RSI was at neutral levels. DEXE hasn’t experienced this type of momentum exhaustion since the crypto bear market. In the past, with similar RSI readings, the price has either experienced strong relief rallies or entered a phase of extended consolidation.
Taking into account the weekly timeframe, we can see that RSI is at 38.40, which confirms that the oversold condition is not something we see daily. Therefore, we can conclude that as for swing traders, this double-timeframe oversold signal indicates that the pressure of selling has become so high that it lures those looking for bargains. The panic phase hasn’t arrived yet, as the monthly RSI is at 41.61. This implies that there is some space for the price to go down if we consider the entire market environment. However, when we look at the readings on the daily and weekly timeframes, we can at least say that the decline should stop.
ADX at 27.72 Confirms Sellers Control the Trending Move
The primary trend in gold is down, and has been since early July. Although it doesn’t look as if bulls will be able to reverse momentum in the near term, we are probably not far from a tradeable low. However, identifying when a reversal might be at hand for gold may be tricky for most investors.
What is most telling is how the ADX acceleration phase corresponded with DEXE’s inability to hold much of the short-lived Zcash-induced rally. Once that catalyst was exhausted, the sellers assumed complete command confidently. As a result, day trading strategies should be adjusted to a trending environment from range trading. This implies that you should go with the flow instead of against it until ADX falls below 25 again.
Price Trapped Below Entire EMA Ribbon Since Rally Reversal
The moving average setup is now fully bearish, as DEXE is trading beneath all the important EMAs. The 10-day EMA at $4.88 served as first resistance on the way down this week, with the 20-day at $5.30, and the 30-day at $5.67 making a resistance region stacked above that. But most crucially, the 50-day EMA at $6.24, which had supported price during the previous accumulation stage, is now trading 33% above spot.
Every rejection from the 10-day EMA is likely to result in making a new multi-year low.
Monthly Low at $4.35 Becomes Critical Support Test
There are key resistance levels that VET must breach in order to put the recent bearishness to rest. The 10-day EMA is clinging to the $5.21 level, with the 20-day EMA a little higher at $5.26. The 10-day EMA is a long way underneath the final entry point of the Grayscale pump, offering minor resistance. However, the 20-day EMA should be the first real hurdle following the psychologically significant $5.00 level.
However, these levels have proven irrelevant in the past because the market was in a strong uptrend. The picture changes drastically when the trend is bearish, as is the case now, and such technical levels carry far more weight. Should the bears breach the $4.00-4.20 region, the next logical target is the 2016 low of $3.60.
As long as price remains contained beneath $4.88 the bearish confidence will maintain control. The move that stole the highs from early March is still a solid ceiling and price is consolidating within a bearish pennant formation. The fact that the bearish momentum/capitulation scenario is playing out so quickly goes to show how fast sentiment changes for these low-market cap tokens once the broader market narrative turns sour.
Relief Bounce to $4.88 Most Probable Near-Term Path
Bulls need a strong close above $4.88 to recover from the technical weakness. This step may help to get back the 10-day EMA and also lead to short-covering since the market is oversold based on many different timeframes. Then, the subsequent important resistance level of $5.30 could be tested. This resistance is 13% higher than the current price.
If we see a break of the $4.35 support level with a substantial increase in volume, then things could get ugly fast. The next reasonable target to the downside would be yearly lows near $4.00. This would also likely wash out a lot of weak hands who bought the recent hype of the altcoin relief rally.
With the oversold RSI all across the board and trending ADX conditions securing the downside, DEXE will likely test the previous $4.35 area as new supported price levels. Without a new positive narrative to step in for the Grayscale premium that’s run its course, capped potential around recent $4.88 resistance could be the only option. Pausing in the $4.35/$4.88 zone for some time to let this stretch adjust looks the path of least resistance.
