DeXe (DEXE) Wipes Out Gains After Hitting Rising Wedge Resistance

Key Takeaways

• Rising wedge breakdown signals potential correction.
• RSI divergence indicates weakening bullish momentum.
• Fibonacci retracements suggest key support zones.

DeXe (DEXE) has recently completed a significant bullish impulse, as depicted in the daily and 1-hour charts.

The price action suggests that DeXe has reached a key inflection point, with the potential for a corrective phase following its impulsive rally. 

Yesterday, the rejection with the rising wedge resistance fell by 13%, the first significant sign of a potential reversal. 

DEXE Price Analysis

During the daily timeframe, DEXE completed a five-wave Elliott Wave structure, culminating in wave (v), which reached the $24.21 mark on Feb. 3 with a 22% daily rise.

This peak coincided with the upper boundary of a rising wedge pattern, which usually indicates cycle tops and points out a bearish reversal signal. 

The subsequent rejection from this wedge has resulted in a sharp decline towards the $21 level, highlighting the onset of a corrective phase. The price has decreased 13% from yesterday’s high, bringing it back to ascending support. 

The Relative Strength Index (RSI) on the daily chart shows bearish divergence, with prices making higher highs while RSI forms lower highs, indicating waning bullish momentum.

The price has now breached the wedge’s support trendline, suggesting further downside potential.

Key Fibonacci retracement levels at $20.16 (0.236), $17.66 (0.382), and $15.63 (0.5) serve as potential support zones, with the 0.5 retracement aligning closely with previous consolidation areas, reinforcing its significance.

DEXE Price Prediction

The 1-hour chart illustrates DEXE’s detailed corrective structure following the impulsive peak.

The expected breakdown from the rising wedge  should initiate an ABC corrective wave, with wave (a) expected to target support around $17.66 (0.382 Fibonacci retracement).

A brief recovery in wave (b) may retest the $20.16 level, acting as a lower high within the broader correction.

Wave (c) is projected to extend towards the $15.63 level, representing the 0.5 Fibonacci retracement, where buyers might re-enter.

If bearish momentum persists, the correction could deepen towards the $13.61 level (0.618 Fibonacci retracement).

RSI on the 1-hour timeframe is trending lower, supporting the expected continued downside in the near term. Any bullish divergence or oversold RSI conditions at key support levels could signal the end of the corrective phase.

Although the overall outlook is bearish, the strongest sign of the coming downturn will be the ascending support breakdown. Until that happens, there will still be a slight chance of further upside movement. 

Key Levels to Watch

• Immediate Resistance: $20.16 (0.236 Fibonacci retracement).
• Key Support: $17.66 (0.382 Fibonacci retracement).
• Critical Support: $15.63 (0.5 Fibonacci retracement).
• Short-Term Target for Wave (c): Around $15.63 if correction extends.
• Invalidation Zone: Above $24.21, signalia ng potential bullish continuation.