- DEEP’s trendline breakout hinted at a potential shift as the price consolidated around $0.15
- Traders increased their long leverage at $0.2217, but cumulative shorts relatively above the price were declining
DeepBook (DEEP) is in the news today after its price crossed above an intricate downward trendline, one that it had maintained control over since January. This seemed to allude to rising market potential.
After its breakout, DEEP flashed signs of accumulation around $0.15, with the altcoin ultimately going on an uptrend. At the time of writing, it was trading at $0.22731. This suggested that DEEP’s price saw a 35% hike, parallel to the hike in trading volume on the same day.
In fact, the MACD supported the rising bullish trend as its MACD line at 0.03381 crossed above the Signal line at 0.01956. All while the positive histogram’s value hit 0.01425.
Now, DEEP has the chance to revisit its previous all-time high of $0.34588, provided its press time momentum remains strong. The market would likely accelerate to $0.34–$0.35 if the price breaks above $0.23 during the ongoing bullish phase.
Source: TradingView
If the price fails to keep its position above $0.23, then it might revert towards $0.15 – A level that has transformed into a potential resistance. The inability of $0.15 to defend its position would trigger intensifying bearish forces targeting support levels near $0.10.
There seemed to be some risk near significant resistance zones as profit-taking activities would produce market volatility and short-term price corrections. This, although the trendline breakout and rising MACD hinted at positive continuation possibilities.
An analysis of the volumes close to $0.23 pointed to the need for close scrutiny before DEEP takes its next step. A break and sustained stay above $0.34 would see DEEP hit a new ATH on the charts.
DEEP’s liquidation heatmap
AMBCrypto’s analysis also revealed that the long position leverage hiked significantly when the price hit $0.2217. This was clearly indicated by spikes at 5x to 15x leverage points on the liquidation map.
Long positions accumulated mostly around the price range from $0.2208 to $0.2280. Especially as cumulative long liquidation leverage climbed to a notable peak.
On the contrary, DEEP appeared to be facing diminishing opposition from short sellers in the market.
Source: Coinglass
A sustained upward push from DEEP would trigger liquidation for shorts located at $0.24 and $0.25. This would enable a potential short squeeze, with its effects felt at $0.26 and $0.27.
Alternatively, leveraged long traders positioned at $0.2217 may risk liquidation if DEEP falls to the $0.22-price level. This would intensify selling pressure until $0.21 and potentially, even lower.
At the time of writing, short selling activity near its prevailing trading levels were diminishing. This seemed to support the notion of a sustained uptrend in the market. However, a sharp market decline could occur from the densely positioned long trading position at $0.22.