DEXE Token Surges 18% Then Reverses, Investors Cautious

DEXE, the governance token of the DeXe protocol, has seen notable price movements recently. Between April 15 and April 22, DEXE surged by 18%, approaching the $15.75 resistance level and indicating potential for further gains. However, a sharp reversal on April 23 erased most of the previous week's gains, causing concern among potential investors.

The token's long-term bullish structure is evident from its rally in early 2024, where prices rose from $2.78 to $18.33, breaking out of the bear market. This rally retreated to the 78.6% retracement level at $6.1 before climbing to $24.2 in January 2025. The 23.6% extension level at $22 provided resistance to DeXe bulls in December and January, and the token has since been in a retracement phase. Despite this, it has maintained its long-term bullish structure.

Technical analysis indicates that DEXE could retrace to $10.92, a level that has been tested twice in the past month. If history repeats itself, a retest of $10.92 as support could offer a buying opportunity. However, the technical indicators on the daily chart do not show much bullishness due to the past six weeks' price action. The A/D indicator is in a slow downtrend, reflecting a lack of strong demand for DEXE. The CMF has also struggled to clear the +0.05 level for two months, indicating weakness from buyers.

One concern for potential investors is the low trading volume of DEXE. The 50-day moving average of daily trading volume on Binance is 177k DEXE, worth $2.4 million. This is significantly lower than the trading volume of Ethereum, the leading altcoin, which has a 50-day moving average of 593.93k ETH, worth $1.04 billion. Additionally, DEXE experiences a 0.02% unlock each day of its total supply of 96.5 million DEXE, which amounts to $300k supply. While this is not much for a $1.13 billion asset, the combination of low trading volume and daily unlocks could be concerning to potential investors.

In conclusion, while a deeper DEXE dip could present a buying opportunity from a technical perspective, investors should exercise caution due to the token's low trading volume and daily unlocks. The long-term bullish structure of DEXE is encouraging, but the recent price action and technical indicators suggest that buyers should be cautious.