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After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound?

After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound?

CryptoNewsNetCryptoNewsNet2026/07/22 22:12
By:CryptoNewsNet
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After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound?

After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound? image 0  thenewscrypto.com 38 m
After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound? image 1
  • $DEXE has fallen from a high of $46 to $4.
  • The sellers drive the long-term direction.

$DEXE is showing early signs of stabilisation after one of its steepest declines, with the token falling from the $46 range to around $4 in a dramatic sell-off over the last 24 hours. It was just nine days after reaching its all-time high of $48.89. The asset is now trading nearly 90% below its peak, reflecting the intensity of recent bearish pressure.

Despite the sharp correction, technical analysts have identified a falling wedge on the chart, a pattern that is associated with bullish reversals when confirmed by a breakout. Also, $DEXE’s price action has continued to tighten within the wedge, suggesting that selling momentum may be slowing as buyers begin to defend key support levels.

A decisive move above the wedge’s descending resistance could trigger a relief rally and improve short-term market sentiment. The recent collapse has significantly weakened investor confidence, leaving bears in control of the broader trend. Unless $DEXE reclaims important resistance levels, downside risks are likely to persist.

For now, the token sits at a critical technical crossroads. A confirmed breakout could attract renewed buying interest and shift momentum back toward the bulls, while another rejection may extend the current period of weakness and keep pressure on the asset.

Will $DEXE Bears Deepen the Losses or Reverse the Momentum?

If the bearish correction intensifies, the potent bears could push the $DEXE price to the crucial support at $3.75. A continuous loss might initiate the death cross to take place, which likely triggers the price to face more downside.

Upon a momentum reversal, the $DEXE price would immediately test the nearest resistance and climb to $4.90. Once the bulls find their ground and reinforce its upside move, a golden cross might emerge, which sends the asset higher.

$DEXE’s Moving Average Convergence Divergence (MACD) line is below the signal line. The short-term selling pressure is picking up speed, and downward momentum is actively accelerating. Both lines are below zero, indicating that the overall trend is down.

The sellers are driving the long-term direction, and this is a strongly bearish signal. It’s a high-risk area to buy and favours waiting out the slide until the lines start curving back up.

After a Sharp Collapse, Can DEXE’s Falling Wedge Trigger a Rebound? image 2 (Source: TradingView)

Furthermore, the daily Relative Strength Index (RSI) reading of 19.68 falls deep in oversold territory. Panic has pushed the $DEXE price down sharply in a short timeframe. It is severely stretched to the downside, and likely not guaranteed to see a full trend reversal.

Notably, a short-term relief rally is common from these levels. Traders have to wait for the value to start moving back above 20 or 30 to confirm that the buyers are actually stepping back in.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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