Anticipated Move in DeepBook Value - Could $0.157 Mark Future Support Level for DEEP?
Let's Talk DeepBook (DEEP): Bearish Trend or False Alarm?
- Share
- Tweet
Busting the charts with a whopping 430% surge, DeepBook [DEEP] might be showing signs of exhaustion.
The main culprit behind this bearish outlook appears to be profit-taking along with the asset entering the overbought zone.
Taking it to the streets – on-chain analysis
Despite the gloomy outlook, some shrewd investors and traders seem to be keen on accumulating DEEP tokens, reports CoinGlass, an on-chain analytics firm.
In fact, CoinGlass's Spot Inflow/Outflow metrics indicate an outflow of significant $870K worth of DEEP tokens over 48 hours. This outflow from exchanges suggests potential accumulation.
Source: CoinGlass
On the other hand, traders seem to be betting big on the downside, as DEEP's OI-Weighted Funding Rate stands firm at -0.2448%. That figure signifies intensified shorting activity and the likelihood of a near-term sell-off.
Source: CoinGlass
Price action and the fall of Open Interest (OI)
At the time of writing, DEEP is trading at approximately $0.2067, marking a drop of over 15% in the last 24 hours. This descent didn't go unnoticed, as traders and investors started abandoning the token, leading to a 55% drop in Trading Volume.
Interestingly, 19% of DEEP traders' positions were liquidated during the same period due to the price decline. This significant drop in OI, combined with the price drop, points towards strong bearish momentum at play.
Technical analysis and price targets
Our website's technical analysis suggests that DEEP's price could be overextended, and a correction is on the horizon. The emergence of a bearish engulfing candlestick pattern at the local top implies DEEP might plummet by over 22%. The $0.157 level emerges as the next key target.
Momentum indicators also give off a sell signal. The RSI stands at 78, placing DEEP firmly in overbought territory. Meanwhile, the Chaikin Money Flow (CMF) sits at -0.05, suggesting outflows and increased sell-side pressure.
In conclusion, despite the mixed signals, it appears the current bullish momentum for DEEP may be growing weak. Unless strong accumulation picks up, a correction might be unavoidable before the next leg up.
Check out our other articles:
- Win $500 USDT by taking this quick survey!
- Berachain Struggles: $300 mln slips out, and BERA's comeback seems uncertain
- Surge in Ethereum Ecosystem Stats: Are we witnessing records or just speculation?
Share your thoughts on Twitter at @coin_enlivn and stay informed about the latest crypto news and analysis.
- The bearish outlook for DeepBook (DEEP) could be due to profit-taking and the token entering the overbought zone.
- Some shrewd investors and traders are interested in accumulating DEEP tokens, according to CoinGlass, an on-chain analytics firm.
- CoinGlass's Spot Inflow/Outflow metrics indicate an outflow of significant $870K worth of DEEP tokens over 48 hours, suggesting potential accumulation.
- Despite the price drop, a significant 19% of DEEP traders' positions were liquidated during the same period, signifying strong bearish momentum.
- Our website's technical analysis suggests that DEEP's price could be overextended, implying a potential correction of over 22%.
- Momentum indicators like RSI and Chaikin Money Flow (CMF) give off a sell signal, with DEEP placing firmly in overbought territory.
- Farah, a crypto trader, is considering the likelihood of a near-term sell-off due to intensified shorting activity on DEEP.
- Investing in DEEP may be risky, as the current bullish momentum seems to be weakening, and a correction might be unavoidable before the next leg up.
