DEEP Crypto Rallies 550% in a Week: What’s Behind the Surge?

DEEP experienced a remarkable increase of over 550% during its inaugural week.
Can the Sui-based altcoin maintain its upward momentum amidst mixed signals?

On October 14th, DeepBook version 3 (V3), an innovative DEX (decentralized exchange), was launched on the Sui [SUI] network.

Its official token, DEEP, debuted on the same day, recording a staggering gain of over 550% last week. The altcoin soared from $0.016 to $0.09, marking a spectacular 5x rally, while it was holding at $0.08 as of the latest updates.

Source: CoinMarketCap

As per the team’s announcement, a potential factor driving DEEP’s price upward is its extensive use case within the Sui DeFi ecosystem.

It serves as the protocol’s governance token and can also be staked for rewards and trading fee discounts.

“DEEP can be utilized to pay trading fees, granting users discounts the more they trade, encouraging increased participation. These features collectively boost liquidity and enhance trading efficiency on DeepBook.”

Moreover, the DeepBook DEX employs CLOBs (central limit order books) to minimize fees while leveraging Sui’s high-performance architecture.

According to the team, this approach competes with conventional DEXs that utilize AMM (automated market makers) like Uniswap.

“AMMs provided a head start for DeFi, but we aim to elevate the DeFi space with CLOBs. Our design ensures lower slippage, increased liquidity, and accuracy—just as you prefer.”

Will DEEP’s Upsurge Persist?

On October 20th, the token surged by 49%, adding to its remarkable debut week performance.

Although there was a slight pullback at the time of reporting, sentiment around the token on CoinMarketCap remained decidedly positive.

Nonetheless, trader positioning indicated that a significant number of speculators were shorting the asset. According to Coinglass’s Long/Short ratio, 52% of positions were shorting DEEP, signaling a somewhat bearish outlook.

Source: Coinglass

A similar short-term bearish sentiment was noted, highlighted by a decrease in Open Interest (OI).

It fell by nearly 8%, suggesting capital outflows from the DEEP Futures market.

Consequently, a reduction in OI may also indicate a declining interest in the asset among traders, potentially exacerbating any pullback and lowering DEEP prices.

Additionally, there were more long positions liquidated than short positions, further reinforcing the short-term bearish sentiment.

Source: Coinglass

Read DeepBook [DEEP] Price Prediction 2024 – 2025

If the bearish trend carries on in the near term, DEEP may slide down to $0.05 (50% Fib level), particularly if it falls below $0.08.

Nevertheless, an additional surge could potentially drive it up to $0.11. Therefore, both $0.05 and $0.11 are critical levels to observe in the near future.