DeXe (DEXE) defied the cryptocurrency market’s decline on Tuesday, surging nearly 70% in 24 hours as an aggressive short squeeze forced bearish traders to cover their positions.
The move pushed DEXE to a new yearly high near $24, while Bitcoin and most altcoins traded in the red. Derivatives data shows that the rise came from leverage, not from new spot demand.
Record open interest fueled a short squeeze
Open interest in DEXE rose to nearly $70 million on Tuesday, the highest reading ever. This high was reached as the price moved vertically, a classic sign of a forced situation rather than a sustained accumulation.
Coinglass data shows that shorts have been the side that has been punished for several months. Red short liquidation bars dominate the chart, while long liquidations have remained small throughout.
The decisive hit came from a series of short liquidations worth about $1.3 million, the largest on the chart. This wave of forced buybacks automatically pushed the 70% candle and extended for several months pool.
Fading trading volume warns that the rally may be stalling
The pressure appears strong, but the weekly chart is showing warning signs. The DEXE exchange almost completely recovered its decline in 2025, rising from around $1.73 to the $24.20 ceiling that has capped its price since February 2025.
This week’s candle marked that level and was rejected, closing near $23.50. The price has reclaimed the 0.618 Fibonacci support around $15.60, keeping the structure bullish for now.
However, weekly trading volume declines as the price hits new highs. The RSI is showing bearish divergence, having fallen since April even as the DEXE has risen to a new high High.
Both signals indicate that the movement lacks a strong buying base. This pattern mirrors other leveraged models Alternative currencies That rose and then faded.
DEXE price could target $30 if the pressure continues
Meanwhile, the daily chart frames a bullish case. The cup and handle pattern has been forming since October 2025, with a breakout in May, a retest of support, and the current push higher.
This pattern forecasts a measured target near $30, which corresponds to the 1.272 Fibonacci extension at $30.31. DEXE traded at around $22.88 at press, just below the $24.20 resistance level.
A thesis needs two things to hold. The price must break and close above $24.20, and the RSI must reclaim the 70 level to confirm momentum, according to one of the charts. analysis.
Failure there would return control to the sellers. With the rally built on leverage rather than immediate demand, DEXE faces a binary test at longer-term resistance. The next weekly close should determine the trend.
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