- DEEP risked a drop of over 22%, with the $0.157 zone emerging as the likely downside target.
- DeepBook Protocol’s OI-Weighted Funding Rate sat at -0.2448%, reflecting firm bearish pressure from short-leaning traders.
After a recent significant upside move of over 430%, DeepBook [DEEP] started showing early signs of exhaustion.
The likely reason behind this bearish speculation is ongoing profit-taking and the asset’s entry into the overbought zone.
Bearish on-chain metrics
Despite these negative outlooks, some investors and traders appear to be closely monitoring the asset and even accumulating it, according to on-chain analytics firm CoinGlass.
In fact, data from the Spot Inflow/Outflow metrics revealed that exchanges witnessed an outflow of a significant $870K worth of DEEP tokens over 48 hours. Such outflows from exchanges suggest potential accumulation.
Source: CoinGlass
Meanwhile, trader sentiment remained bearish, as they appeared to be heavily betting on the downside. As of this writing, DEEP’s OI-Weighted Funding Rate stood at -0.2448%.
That figure reflected intensified shorting activity and the growing likelihood of a near-term sell-off.
Source: CoinGlass
Current price momentum and fall of OI
At press time, DEEP changed hands near $0.2067, down more than 15% in the last 24 hours. Of course, that kind of drop didn’t go unnoticed.
During the same period, due to its downward momentum, traders and investors abandoned the token, resulting in a 55% drop in Trading Volume.
In addition, 19% of DEEP traders’ positions were liquidated during the same period due to the price decline. This notable drop in Open Interest, along with the price decline, indicates strong bearish momentum at the time.
Price action and technical analysis
According to AMBCrypto’s technical analysis, DEEP’s price appears to be overextended, and the chart suggests the asset may be preparing for a correction.
Source: TradingView
On the daily chart, a bearish engulfing candlestick pattern has emerged at the local top — a classic reversal signal.
Should this pattern confirm, DEEP could drop over 22%, with the $0.157 level acting as the next key target.
RSI and CMF flash a sell-off signal
Momentum indicators have also started flashing red. DEEP’s RSI stood at 78, placing it firmly in overbought territory.
Meanwhile, the Chaikin Money Flow (CMF) sat at -0.05, further suggesting outflows and mounting sell-side pressure.
All combined — price action, technicals, and on-chain data — point toward exhausted bullish momentum. Having said that, unless accumulation grows stronger, a corrective move might be unavoidable before the next leg up.