The DEXE price has staged a sharp recovery after one of its steepest sell-offs, rebounding nearly 25% over the past 24 hours to trade around $4.90. The token had plunged from above $40 to below $4 within days, wiping out nearly 90% of its value and triggering widespread liquidations across the derivatives market. While the rebound has eased immediate selling pressure, derivatives data reveals a market that is still undergoing a significant reset.
With leveraged positions flushed, funding rates deeply negative, and spot buyers beginning to return, the key question remains: Is DEXE laying the foundation for a sustainable recovery, or is this simply a short-lived relief rally?
DEXE Rebounds After Massive Sell-Off
DEXE has rebounded nearly 25% over the past 24 hours after collapsing from above $40 to below $4, erasing almost 90% of its value within days. While the relief rally has eased immediate selling pressure, derivatives data suggests the market is still adjusting to one of its largest deleveraging events in recent months.
The crash wiped out a significant portion of leveraged positions, with Open Interest falling from nearly $100 million to around $20 million, reflecting an almost 80% decline in outstanding futures contracts. Such a sharp reduction indicates that the recent rebound has occurred after excessive leverage was flushed from the market rather than being driven by aggressive speculative buying.
Market sentiment also remains cautious. Funding Rates plunged below -0.30% during the sell-off, marking one of the most negative readings in recent history before gradually recovering toward neutral levels. The extreme negative funding reflected panic-driven short positioning, but the subsequent normalization suggests bearish conviction is beginning to ease as price stabilizes.
Order flow data paints an equally interesting picture. Futures CVD recorded persistent net selling throughout the correction, highlighting continued pressure from leveraged traders. In contrast, Spot CVD has started to trend higher following the rebound, indicating that buyers in the spot market have begun accumulating DEXE at discounted prices. This divergence suggests the recovery is being supported by genuine spot demand rather than a leverage-driven bounce.
Can Bulls Sustain the Momentum?
The DEXE price rebound has shifted attention from capitulation to recovery, but the coming sessions will determine whether buyers can build on the recent momentum. Holding above the current support zone would keep the recovery intact and improve the chances of reclaiming the $6 resistance. A successful breakout above this level could pave the way for a move toward $8, where the next major supply zone is likely to emerge.
However, if the rebound loses momentum and DEXE fails to defend its recent lows, selling pressure could quickly return, exposing the token to another retest of the $4 support region. For now, the recovery remains constructive, but bulls must continue attracting fresh demand to transform the current relief rally into a sustained trend reversal.