DEXE prices surge significantly after a recovery from the recent sharp dip below pennant support.
The token’s rising whale activity and overhead liquidity clusters point to a potential bullish rally continuation.
DeXe [DEXE] emerged as one of the top gainers in the last 24 hours, recording an 8% gain at press time.
This comes after the recent bearish run forced the token broke below its pennant support. The key technical support level that had previously guided price consolidation.
The sharp drop initially indicated bearish pressure. But the bulls rushed in quickly to reclaim lost ground.
Source: TradingView
On the daily chart, DEXE price action indicates a potential invalidation of the previous breakdown, with the possibility that the decline could be a bear trap.
Whales are buying into weakness
On-chain data supports this bullish reversal thesis.
According to CryptoQuant, whale-sized Futures Average Order Size surged during the recovery phase. These large orders clustered right near the zone of the breakdown.
Historically, such whale-pegged movements have resulted in momentum rallies. If history tends to repeat itself, DEXE could get enough momentum to rally past the broken pennant support level.
Source: CryptoQuant
Overhead liquidity could initiate further price surges
AMBCrypto close analysis on the CoinGlass market liquidity data shows close groupings of liquidity just above the current trading range.
In the past, such groupings acted as a magnet to pull the token prices up, as a result, attracting short-term activity.
In DEXE’s case, this setup presumes a likely continuation of the bullish rally. Traders and investors alike are probably wanting to tap into this overhead liquidity, especially if current bullish momentum can be sustained.
Combined with whale support, this is a good setup for bulls to push further higher.
Source: CoinGlass
DEXE bulls might regain pennant zone
If the price can move back into the pennant zone, it has the potential to trigger a flip in market structure. This would confirm the bullish reversal and set DEXE up to make a fresh local high.
As the larger market remains cautious, the technical and on-chain metrics of DEXE indicate a potential continuation of the bullish rally.
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