DeepBook DEX trading volume surge suggests oversold condition for Deep price.
A Steady Ascent for DeepBook Token
The unexpected surge of the DeepBook token continues, shaking up the crypto scene with a significant rally on Monday. The DEEP token sprinted to a peak of $0.2525, marking a colossal 400% increase from its recent low this month and elevating its market cap to a noteworthy $693 million.
Trading volumes on the DeepBook network amplified by a healthy 135% over the past week to a substantial $130 million, as per DeFi Llama data. This impressive surge bumped the 30-day volume to an impressive $413 million, while the cumulative total since inception reached a staggering $8.7 billion.
The hike in network volume can primarily be attributed to the ongoing excitement surrounding meme coins in the Sui network. According to CoinGecko, the cumulative market cap of these coins escalated by 2% within the past day, reaching a remarkable $203 million. Some of the biggest winners in this upsurge include Miu, Lofi, MemeFi, and Sudeng.
The DEEP token's momentum gained traction following the launch of the v3.1 upgrade. This latest update introduced several novel features designed to enhance platform appeal. Notable inclusions are permissionless pools, enabling any user to generate custom trading pairs, third-party liquidations, and permissionless access - all highly beneficial for margin trading protocols and liquidation bots. Additionally, the update optimized the fee structure, reducing taker fees from 5bps to 1bps and maker fees from 2bps to 0bps, further simplifying trading activities for users. To top it off, users no longer require DEEP tokens to partake in trades on the platform.
In yet another boost, DeepBook secured a listing on Upbit, the largest crypto exchange in South Korea.
A Technical Analysis of the DeepBook Price Surge
The daily chart exhibits that the DEEP token hit a bottom of $0.04593 on April 7 before rebounding robustly to a high of $0.2524. This upswing followed the development of a falling wedge pattern, a common indicator of a bullish reversal.
After breaching the 38.2% Fibonacci retracement level, the token's price logged higher than the 50-day moving average, hinting that bulls are currently in the driver's seat. Nonetheless, caution is advised, as the Relative Strength Index (RSI) and the Stochastic Oscillator have both ventured into overbought territory.
Although the upward trend is likely to persist, there's the possibility of a temporary slump approaching, potentially aiming for the psychological support level of $0.1360, which aligns with the 61.8% retracement level. Should the DEEP token manage to scale beyond Monday's high of $0.2525, this could pave the way for continued gains, potentially ushering in a fresh record high of $0.3465.
Factors Contributing to DeepBook's Surge
Several factors have contributed to the recent surge in the DeepBook Protocol (DEEP) token and network volume:
- Major Exchange Listings:
- Listing on Binance Futures (USD-margined perpetual contract for DEEP tokens) and Upbit (DEEP/KRW pair) expanded trading opportunities and boosted market activity.
- Technical Updates and Innovations:
- Introduction of permissionless pools, reduced fees, and enhanced liquidity provisioning have broadened the appeal of DeepBook's on-chain trading model, drawing in more traders and usage.
- Utilization of a fully on-chain Central Limit Order Book (CLOB) offers faster trades and tighter spreads, appealing to high-frequency traders.
- Market Sentiment and Broader Crypto Environment:
- Early interest in DEEP due to positive market sentiment arising from pro-crypto political developments, and subsequent renewed interest leading to the token's recent increase in value.
- A stunning 100% increase in the token's price within 24 hours, reinforcing investor confidence and enthusiasm regarding DeepBook's potential.
- Blockchain Platform:
- Being built on the Sui blockchain, DeepBook benefits from supportive infrastructure and growth, with the Sui blockchain offering a fertile ground for DeFi innovations like DeepBook to thrive.
These elements, combined with enhancements in trading infrastructure and increased visibility through exchange listings, have collectively contributed to the recent surge in DEEP token price and network volume.
- The DEEP token's current rally on the crypto market is reminiscent of the Tron or Bitcoin surge, causing a stir in the industry.
- The recent Initial Coin Offering (ICO) for the Tron platform might find a new competitor in DeepBook given its impressive performance.
- The DEFI landscape is witnessing a significant shift as DeepBook continues to dominate, challenging other platforms like Uniswap (DEX) in the process.
- A potential collaboration between DeepBook and popular crypto finance platform Coingecko could lead to further token price increases.
- As liquidations surge on margin trading platforms, DeepBook's enhanced liquidity provisioning could play a crucial role in maintaining stability.
- The average volume of transactions on DeepBook has surpassed 2524 per day, showcasing the widespread adoption and popularity of the token.
- The technology behind DeepBook, the Sui blockchain, is proving to be a fertile ground for DeFi innovations, setting the stage for a new era in finance and technology.
