The price of DeXe (DEXE) has been struggling recently, continuing its downward trajectory and erasing much of the gains it made earlier. Despite this, a closer look at the weekly chart paints a more hopeful picture, suggesting that DEXE could be primed for a potential reversal if certain conditions are met.
The altcoin is currently caught in a symmetrical triangle pattern, a setup often seen before significant price movements. A symmetrical triangle signals a tug-of-war between the bulls and bears, where the narrowing price range suggests that momentum is building. The critical question now is whether the bulls will take control and spark a reversal or if the bears will break through the support, sending the price lower.
Historically, symmetrical triangles are known for leading to sharp breakouts, often indicating the market’s next direction. For DEXE, the price action has been consolidating, and the next few days will be crucial in determining whether it can break out to the upside or face further declines. A strong rebound from the triangle’s support level could trigger a short-term rally, while a breakdown could delay any recovery.
On-chain data offers some optimism for those hoping for a reversal. Despite the recent price dip, DEXE’s long-term holders, also known as “HODLers,” remain confident. According to data from IntoTheBlock, 67% of DEXE holders are still in profit, which suggests that the majority of investors bought at lower price points and are holding on to their tokens with a positive outlook. More importantly, 73% of these profitable addresses have held onto their tokens for over a year, reinforcing the idea that DEXE’s investors believe in its long-term potential.
This long-term holding behavior indicates that most of DEXE’s investors are not concerned about short-term price fluctuations. Experienced traders typically accumulate tokens when there is uncertainty in the market, as they anticipate potential gains in the future. This kind of sentiment is crucial for DEXE’s chances of a turnaround, as it can help cushion the downside and potentially fuel a rebound once broader market conditions stabilize.
The fact that a significant portion of the DEXE community is holding their tokens for the long term could also limit panic selling, which often exacerbates price declines. This stability among investors may provide a solid foundation for DEXE to recover, particularly if it can maintain support at the critical triangle level.
Looking ahead, DEXE’s next major price move depends on the triangle’s outcome. A successful rebound from the support could trigger a short-term rally, while a drop below this level would likely send the altcoin into a prolonged period of consolidation or decline. Either way, the presence of long-term holders could help mitigate further losses, and if the market sentiment shifts, DEXE could see renewed bullish interest.
In conclusion, DEXE finds itself at a pivotal point in its price action. The next few days could determine whether the altcoin breaks out to the upside or faces additional downside pressure. However, the continued conviction of long-term holders remains a positive signal, providing hope that DEXE’s prospects are far from over.
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