DeXe, the governance token of the DeXe protocol, has shown a bullish long-term structure, with a significant rally in early 2024 and subsequent retracement. Despite this positive outlook, the token has seen a reversal in gains recently, with low trading volume and daily unlocks raising concerns among potential investors.
The recent performance of DeXe saw a swift reversal on April 23rd, wiping out most of the gains from the previous week. The token witnessed a daily unlock of 0.02% of its total supply of 96.5 million DEXE, which amounted to a $300k supply, relatively small for a $1.13 billion asset. However, the trading volume for DeXe was significantly lower compared to leading altcoins, with the 50-day moving average on Binance being 177k DEXE, worth $2.4 million.
Despite the challenges faced by DeXe, there are still buying opportunities for investors. The token’s long-term bullish structure has been retained, with the recent retracement phase offering a potential entry point for buyers. The Fibonacci retracement levels on the 1-day chart suggest that a retest of $10.92 as support could present a good buying opportunity. However, caution is advised due to the lack of strong demand indicated by technical indicators such as the A/D indicator and the CMF.
In conclusion, while a deeper dip in the price of DeXe could potentially provide a buying opportunity from a technical perspective, the low trading volume remains a concern. Investors should be cautious and conduct thorough research before making any investment decisions. It is important to note that the information presented in this article is the writer’s opinion and does not constitute financial, investment, trading, or other types of advice.
