DEXE drops 11% as retail turns bearish: Can whales hold $12 support?

Despite the broader market cooldown, Dexe [DEXE] has shown pronounced weakness, trading in a steep downtrend from $16 to a low of $11.

At press time, DEXE traded at $12, down 11.5% on the daily charts. Over the same period, the altcoin’s market cap dropped 12%, indicating increased capital outflows. 

DEXE futures retail traders flip bearish

After DEXE rallied to $16.2, Futures Retail Trading Activity data from CryptoQuant showed excessive retail orders. 

This suggested that retail traders have largely dominated the futures market over the past week. However, with the price uptick, this group started closing positions. 

In fact, the altcoin’s Open Interest (OI) dropped 8% to $33 million, while Derivatives Volume rose 25% to $90 million as of writing. A rise in volume while OI declined suggested increased trading activity with traders closing positions. 

Thus, significant capital flowed out of Futures positions. In fact, over the past 24 hours, DEXE Futures saw $30.56 million in outflows compared to $29 million in inflows. 

The altcoin’s Futures Netflow dropped 174% to $-1.21 million. A negative net flow suggested that more positions closed over this period, a classic risk-off sentiment pattern.

Although reduced speculation has eventually stabilized the market, sudden capital outflows have preceded a weakened market structure. Thus, in the short term, markets have tended to retrace.

Bearish momentum strengthens

Amid a shift in market sentiment, bears displaced bulls and effectively dominated the market. In fact, the Bulls vs. Bears (BvB) indicator turned negative on the 21st of April for the first time in two weeks.

At press time, the indicator sat around -20.38, suggesting that bears currently have significant control of the market.

As bearish pressure intensified, the altcoin’s upside momentum weakened while downside momentum strengthened. The Relative Strength Index (RSI) confirmed this shift, dropping from 83 to 66 after a bearish crossover.

With both indicators signaling continued weakness, a breach of the $12 support appears likely, opening the path toward $10 if traders keep exiting positions.

DeXe whales defend $12

While the market structure remains bearish, participants in the spot market, especially whales, have attempted to absorb the selling pressure.

DEXE whales have remained active on the spot and are actively buying. The Spot Average Order Size data from CryptoQuant showed an increase in large whale orders around $12.

While these orders could be on either the buy or sell side, Spot Taker CVD suggests these whales have been aggressively accumulating. In fact, this metric also shows increased buy orders at $12 the past two days, which coincided with the market drop.

Thus, whale demand remains consistent, thus offering the market a lifeline. With whales positioning, demand could hold $12 support and reclaim $14.7 resistance, setting the stage for a significant rebound. 

Final Summary

• Dexe dropped 11.5% to a low of $11 before slightly rebounding as retail traders in the futures market exited. 
• DEXE whales on the spot have attempted to defend $12, offering the altcoin another chance at a leg up.