After a 430% surge, DeepBook (DEEP) finally ushered in a "high-altitude airflow". Many people began to worry: Has it reached the top and will it start to "free fall"?

To be honest, this wave of decline is not completely unexpected. With such a sharp rise, someone has to take profits, right? In addition, the technical side shows that the market is seriously overbought, and more and more bearish voices are emerging.

📉 On-chain data begins to turn negative

Although the market seems to be quite lively on the surface, in fact, "smart money" is already making moves. According to CoinGlass data, in the past 48 hours, the net outflow of DEEP from exchanges exceeded $870,000. This may be someone quietly accumulating funds... or it may also be that they are selling at a high price.

More importantly, short-selling sentiment is heating up. DEEP’s funding rate is currently -0.2448%, which means that many people are shorting and their confidence is not small.

📉 Price plunge + OI sharp drop = short-selling force?

As of now, the price of DEEP has fallen to $0.2067, a 15% drop in 24 hours. This is not the worst - the trading volume has also plummeted by 55%. In other words, market enthusiasm has begun to cool down.

Moreover, 19% of the positions were forcibly liquidated during the decline, which also shows that many people did not hold on. The reduction in positions + the plunge in prices, this wave of air force is really getting more excited.

📉 Technical red lights🚨

Judging from the chart, DEEP's trend has been a bit "overheated". The classic "bearish engulfing pattern" appeared on the daily chart - this is a reversal signal often mentioned by technical schools.

If this signal holds true, DEEP may have more than 22% room to fall, and $0.157 may become the next "safe haven".

📊 Indicators are also sounding the alarm

The RSI is currently as high as 78, which is firmly in the "overbought" zone. It is no longer a small red light, but a big red light ⚠️.

CMF (Chaikin Money Flow) is also turning around and reaching -0.05, indicating that funds are slowly flowing out and the market is being dominated by short sellers.

🧐 Conclusion: Is squatting for jumping? Or is it just collapsing?

To sum up: on-chain data is not good, technical aspects are dangerous, trading sentiment is bearish...DEEP is really at the "watershed".

Of course, the market always likes to go against human nature. If there are big funds that continue to quietly take over, it is not ruled out that it will rise again. But if no one takes over, this wave of retracement is likely to continue, and $0.157 may really be the key "stop loss zone".

Do you think DEEP is a "squat jump"? Or a "diving competition"? Leave a message to tell us what you think 👇