The DEXE token has staged a sharp recovery following one of its most severe sell-offs on record, rebounding nearly 25% over the past 24 hours to trade around $4.90. The token had collapsed from above $40 to below $4 within a matter of days, erasing roughly 90% of its value and triggering widespread liquidations across the derivatives market.

While the relief rally has eased immediate selling pressure, derivatives data indicates the market is still recalibrating after one of the largest deleveraging events in recent months. With leveraged positions largely flushed out, funding rates deeply negative, and spot buyers gradually returning, the central question is whether DEXE is establishing a foundation for sustainable recovery or merely experiencing a short-lived bounce.

DEXE Rebounds After Massive Sell-Off

DEXE has climbed nearly 25% over the past 24 hours after plunging from above $40 to below $4, wiping out almost 90% of its value in days. Although the rebound has relieved some of the immediate downward pressure, derivatives metrics suggest the market continues to adjust to a major deleveraging episode.

The crash eliminated a substantial share of leveraged positions, with Open Interest falling from approximately $100 million to around $20 million — an almost 80% reduction in outstanding futures contracts. Such a steep decline indicates the rebound has taken place after excessive leverage was purged from the market rather than being propelled by aggressive speculative buying.

Market sentiment also remains cautious. Funding Rates dropped below -0.30% during the sell-off, one of the most negative readings in recent history, before gradually recovering toward neutral levels. The extreme negative funding reflected panic-driven short positioning, while the subsequent normalization suggests bearish conviction is starting to ease as price stabilizes.

Order flow data presents a similarly telling picture. Futures Cumulative Volume Delta (CVD) recorded persistent net selling throughout the correction, underscoring continued pressure from leveraged traders. In contrast, Spot CVD has begun trending higher following the rebound, indicating that spot market buyers have started accumulating DEXE at discounted levels. This divergence suggests the recovery is being underpinned by genuine spot demand rather than a leverage-driven bounce.

Can Bulls Sustain the Momentum?

The DEXE price rebound has shifted market attention from capitulation to recovery, but the coming sessions will be critical in determining whether buyers can sustain the momentum. Holding above the current support zone would keep the recovery intact and strengthen the likelihood of reclaiming the $6 resistance. A successful breakout above this level could open the path toward $8, where the next major supply zone is expected to emerge.

Conversely, if the rebound loses steam and DEXE fails to hold its recent lows, selling pressure could resurface quickly, exposing the token to another retest of the $4 support region. For now, the recovery remains constructive, but sustained fresh demand will be essential to transform the current relief rally into a durable trend reversal.

Source: Coinpedia