DEXE has surged nearly 20% to a four-month high. However, the rally has pushed the RSI into overbought territory.
DEXE’s price has breached the upper Bollinger Band, a signal that the token is trading outside its normal range and a mean reversion toward the middle band is increasingly likely.
If profit-taking kicks in, DEXE faces a pullback to $3.73 first, with a deeper slide to $2.968 if that level fails.
The DeXe Protocol’s governance token, DEXE, is Monday’s top performer in the crypto market. The token has surged nearly 20%, briefly reaching a four-month high of $4.68 during today’s trading session.
The move is supported by a rising daily trading volume, which has climbed to a seven-day high of $24 million. This confirms that genuine demand drives the rally rather than short-term price speculations.
However, readings from technical indicators suggest that buy-side pressure has been so intense over a short period that a price reversal may be approaching.
DEXE’s Rally Has a Warning Label
DEXE’s Relative Strength Index (RSI), assessed on a daily chart, confirms the overheated nature of its spot market. As of this writing, this momentum indicator is 74.16 and climbing.
The RSI indicator measures whether an asset is being overbought or oversold. When an asset’s RSI rises above 70, it signals overbought conditions and a possible price pullback.
Conversely, when the RSI falls below 30, it signals that the asset is oversold, increasing the likelihood of a price recovery.
At 74.16 and still climbing, DEXE is firmly in overbought territory. Historically, when an asset’s RSI reaches this level, it is often followed by a period of consolidation or a pullback as profit-takers step in to lock in gains.
This puts DEXE at risk of shedding some of its recent gains in the near term.
Furthermore, the 20% rise in DEXE’s value has pushed its price toward the upper band of the Bollinger Bands, confirming that the market may soon become overextended.
The Bollinger Bands indicator measures an asset’s price volatility and identifies overbought or oversold conditions.
When price touches or breaks above the upper Band, as DEXE has done, it signals that the asset is trading at an unusually elevated level, outside its normal range. This is not a sustainable position, as prices tend to fall over time.
For DEXE, a sustained push above the upper Bollinger Band combined with an overbought RSI reading points to one conclusion: the current rally is overextended, and a pullback is likely.
$3.73 or $4.97? Here’s What Comes Next for DEXE
DEXE currently trades at $4.38, near the 0.5 Fibonacci retracement level. If profit-taking begins as the overbought signals suggest, the first support to watch is the 0.382 Fibonacci level at $3.73.
A failure to hold this zone would bring the DEXE’s price to the 0.236 level at $2.968, a 32% pullback from current levels.
On the upside, if demand remains, the token could extend its gains a little further.
A close above the 0.5 level Fib Level with sustained momentum could open the path toward the 0.618 retracement at $4.97.
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Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
