The DeXe token (DEXE) has rallied more than 200% since February, but the same breakout that fueled the uptrend now risks turning into a sharp bearish reversal.
DEXE rebounds 200% from February lows
DEXE has made a strong comeback after bottoming near $1.70 in early February and rising above $5.00 in March. The recovery was driven by a combination of altcoin rotation, renewed appetite for DeFi names, and buying momentum after the token cleared key resistance and reclaimed its key moving averages.
Once DEXE crossed the $3.30-$3.60 area, the rally quickly accelerated, helped by improving sentiment across the broader cryptocurrency market. Traders appear to be rotating into mid cap tokens like DEXE in search of higher beta opportunities while Bitcoin and large cap cryptocurrencies have remained flat.
The latest chart structure now suggests that DEXE may form a near-perfect inverted V-shaped reversal.
After rising vertically to the $5.00-$5.20 area, the token quickly lost momentum and started to pull back towards the $4.00 area. This type of setup typically reflects a rapid shift from aggressive buying to equally aggressive selling, often after a frenetic move.
The main support to watch is around $3.95. A clear break below this level would confirm a bearish reversal and likely encourage traders to enter short positions.
A collapse could open the door to below $3
In an inverted V pattern, traders typically take the height of the rally and project it down from the breakout point to estimate a downside target.
Using this method, a confirmed break below support could send the DEXE towards the $3.00 region, with room to drop below $3.00 later in March or by April if selling pressure intensifies. This represents a 30% decline from current price levels.
However, the bearish view is not complete yet. If buyers defend current levels and regain control, the DEXE could rebound towards $5.20, which corresponds to the 1.618 Fibonacci level on the chart.
Right now, DEXE looks like a token at a technical crossroads: either the bulls reclaim the trend, or the 200% boom turns into a classic DeFi bounce.
