DEXE has rebounded by roughly 100% after briefly falling to a long-term demand area near $1.86, but unanswered questions continue to surround the cause of the token’s sharp decline.

The move sent DEXE back into a support region that has held since 2021, with the token dropping from elevated levels into the long-standing $1.86-$3.35 area before recovering to around $3.77. Despite the bounce, the price remains well below pre-crash levels, and traders are still focused on whether the recovery can extend beyond near-term resistance.

Community Speculation Points to DWF, Falcon and Ceffu MirrorX

For some time, market participants had been looking for an explanation for the sell-off, which initially appeared to have no clear trigger. An on-chain analyst later suggested a possible scenario involving market maker DWF, Falcon and Ceffu’s MirrorX mechanism, according to analysis shared on X: https://x.com/_FORAB/status/2080691922927267873?s=20

The analysis alleged that Falcon obtained DEXE tokens after supporting the asset as platform collateral. Those locked tokens were reportedly placed under Ceffu custody, while equivalent mirror tokens were generated on an exchange for trading.

Under that theory, the mirror positions were sold before the original collateral was eventually settled, contributing to the steep market decline. However, the claims remain community speculation. The DEXE team has not issued an official clarification confirming the allegations.

That distinction matters because technical rebounds do not by themselves resolve questions about liquidity, collateral handling or exchange-side token representation. In thin or fast-moving crypto markets, uncertainty over the source of sell pressure can remain a factor even after prices stabilize.

DEXE Returns to a Long-Term Demand Zone

After the sell-off, DEXE briefly touched roughly $1.86 before rebounding to about $3.77. That move represents an approximately 100% recovery from the recent low, even though the token’s absolute price still appears modest compared with its level before the crash.

The return to the $1.86-$3.35 range is significant because the area has repeatedly acted as a major accumulation zone since 2021. The latest decline brought DEXE back to that long-running demand zone much earlier than many market observers had expected.

$6.0-$7.3 Remains the Key Resistance Area

A broader recovery may still require stronger market conviction. Tokens that undergo severe pump-and-dump-style moves often struggle to regain investor confidence, regardless of how their technical structure appears afterward.

If buying interest continues to build, the $6.0-$7.3 range stands out as the first major resistance zone. A sustained move above that area would improve the chances of a broader recovery toward the $15 region.

Until clearer information emerges about the cause of the collapse, DEXE’s price action is likely to remain influenced by both market sentiment and technical levels.