DEXE has rebounded significantly after a sharp drop. Foreign media reports that the token has risen nearly 25% in the past 24 hours, returning to around $4.90. However, data from the derivatives market suggests that this recovery occurred largely after large-scale deleveraging, and market sentiment has not yet fully recovered.
It fell by nearly 90% in a few days
The report noted that DEXE prices had previously plummeted from above $40 to below $4, a nearly 90% retracement within days. This decline was accompanied by the forced liquidation of a large number of leveraged positions, which also quickly cooled down the futures market.
Open interest fell from nearly $100 million to about $20 million, a drop of nearly 80%. This change usually means that previously accumulated high-leverage positions have been largely cleared, and the recent rebound was not primarily driven by new speculative positions.
Funding rates rebound from extreme negative values
During the most intense phase of the sell-off, funding rates briefly fell below -0.30%, reaching a relatively low level recently. As prices stabilized, this indicator began to rise back into neutral territory, suggesting that bearish sentiment had eased somewhat.
The article argues that this shift indicates the market is moving from panic selling to repricing. While pessimistic betting hasn't completely disappeared, the most intense one-sided sentiment has subsided.
Spot buying will be a key focus for future observation.
Looking at the order flow, the futures CVD continued to show net selling during the adjustment period, indicating that leveraged traders were still exerting pressure. In contrast, the spot CVD began to rise after the rebound, showing that some buyers started to accumulate at lower levels.
This means that the current rebound is supported by some spot demand, and is not just a short-term leveraged fund replenishment. If this buying can continue, DEXE has the opportunity to continue to recover from its decline.
However, the article also points out that if prices fail to hold the recent support area, selling pressure may rebound, and the $4 level could be tested again. Only if buying continues to strengthen and push prices back above $6 could the market potentially target the next supply zone around $8.
