DeepBook nears record high: Will $417K selling pressure stall DEEP?

DeepBook [DEEP] is once again drawing attention from traders. The token is witnessing a renewed whale accumulation phase at current price levels.

Interestingly, this accumulation is happening at a critical technical moment. On the 4-hour chart, DEEP was challenging its all-time high at press time, a peak it hit about a month ago, soon after its Coinbase listing.

The token’s price has already broken out of a wedge pattern, cementing the likelihood of the resistance being broken and the momentum continuing.

As seen before, when prices near previous highs, market dynamics frequently become more volatile. DEEP’s liquidity tends to rise as traders adjust their positions, anticipating a significant price shift to either side.

Whale accumulation aids the bulls

Big players seem to be getting in early. DeepBook’s whales are adding more orders to their investment portfolios.

The increased accumulation phase is a reflection of the surging investors’ confidence in the DEEP’s long-term gains.
In most cases, when whales start accumulating the asset, it may occasionally be a sign of a breakout, especially when it is close to resistance levels, as in DEEP‘s case.

However, the market is not entirely aligned with the bullish sentiment.

Spot traders anticipate a correction.

Spot market activity is sending a different signal. At press time, the network had recorded significant daily net inflows worth $417K on the spot market. This suggests more traders are moving tokens from cold storage to exchanges, either for diversification or risk mitigation purposes.

Such movements often indicate an intention to sell. Moreover, the probability of short-term corrections increases at the extreme price level. This explains why many spot traders are currently targeting a pullback from the all-time high zone.

With these mixed signals, the market now faces a clear divide.

On one side, whales are accumulating, hinting at confidence in a potential breakout. On the other hand, spot traders are preparing for a correction, as reflected by rising exchange inflows.

Will the DeepBook bulls prevail?

The next step will most likely depend on which side gains momentum. If the whales’ buying spree continues, DEEP may attempt to surpass its all-time high.

However, if exchange flows lead to a sell-off in DEEP, the token may face a sharp rejection. As it stands, DEEP is at a crucial juncture. The coming days will determine whether bulls can maintain their dominance or if spot bears can take over.

Final Summary

• DEEP whales are making moves as the token price actions test the token’s new all-time high.
• $417K exchange inflows suggest some traders are preparing for a possible correction.