The break of DEEP's trend line hinted at a potential reversal as the price stabilized around $0.15.

Traders increased long-term leverage at $0.2217, but cumulative selling above the price was relatively declining.

DeepBook (DEEP) is making headlines today after its price broke above a complex downward trend line, which it has maintained since January. This seems to indicate potential bullish market prospects.

After breaking through, DEEP showed signs of price accumulation around $0.15, with an upward trend for the currency. At the time of writing this report, its price was trading at $0.22731. This indicates that the price of DEEP has witnessed a 35% increase, alongside a rise in trading volume on the same day.

In fact, the MACD supported the bullish trend, as the MACD line crossed above the signal line at 0.03381 and 0.01956. Meanwhile, the positive histogram value reached 0.01425.

Now, DEEP has the opportunity to revisit its previous all-time high at $0.34588, provided its momentum remains strong by the time of publication. The market is likely to accelerate between $0.34 and $0.35 if the price exceeds $0.23 during the ongoing bullish phase.

Deep Deepbook

Source: TradingView

If the price fails to maintain its position above $0.23, it may retreat towards $0.15 – a level that has turned into potential resistance. Failure of $0.15 to hold its position would escalate the bearish trend strength targeting support levels near $0.10.

There seem to be some risks near important resistance areas, as profit-taking activities would lead to market volatility and short-term price corrections. This, despite the fact that a breakout of the trend line and a rising MACD hinted at positive continuation prospects.

Analysis of trading volumes near $0.23 indicated the need for a careful examination before DEEP takes its next step. A breakout above $0.34 and staying above this level would lead DEEP to a new all-time high on the charts.

Heatmap for DEEP liquidation

AMBCrypto's analysis also revealed that the leverage for long positions increased significantly when the price reached $0.2217. This was clearly manifested through sharp increases at leverage points from 5 to 15 times on the liquidation map.

Buy positions have mostly accumulated around the price range of $0.2208 to $0.2280, especially as the cumulative leverage for long liquidation reached a notable peak.

On the contrary, DEEP seems to be facing diminishing resistance from short sellers in the market.

Deep

Source: Coinglass

Continuous upward movement from DEEP would lead to the liquidation of short positions at $0.24 and $0.25. This would create potential pressure on short positions, with effects felt at $0.26 and $0.27.

Alternatively, short traders with long buy positions at $0.2217 risk liquidation if the price of DEEP drops to $0.22. This would intensify selling pressure until it reaches $0.21, possibly even lower.

At the time of writing this report, short selling activity was dwindling near prevailing trading levels. This seems to support the idea of a continued upward trend in the market. However, a sharp market decline may occur from the dense long trading position at $0.22.