DEXE on the DEX is down 24% in the past 24 hours, with panic selling driving $34.15 million in trading volume. Does this chart look like the bottom-fishing trap from 3 months ago?

I’m Xiao Ming, an emotion hunter and a veteran quant trader. Every day I watch the fear/greed index and funding rates to spot market extremes. Today DEXE’s real-time fear/greed index has dropped to 21. Historical data shows that this coin only hit this threshold or lower 4 times in the past year, and the first 3 times all led to a 30%-60% rebound. At the same time, the funding rate has flipped negative, and the cost for short positions in perpetual contracts has soared to an annualized -0.5%. This usually means shorts are overcrowded, and the market maker could blow out shorts and ramp up at any moment.

On-chain comparison: the last time DEXE traded sideways around 2.3, similar extreme sentiment appeared in July last year, followed by a peak rebound to 3.8 within two weeks. The current price is only 10% away from the historical low of 2.338, and 24-hour trading volume exceeds 300 million RMB—suggesting the main force is violently washing the market while retail traders are cutting losses and exiting.

My trading logic: when market fear reaches extremes, that’s when the turning point arrives. With the short-side funding rate staying elevated, the cost to short is unusually high. Once shorts cover or the sell pressure pauses, the rebound can be very brutal. Entry suggestion: place light orders in the 2.45-2.55 range. Set the stop-loss below 2.3 (below the daily previous low). Take profit #1 at 3.0 (about a 16% gain), with a strong resistance at 3.5. Keep position sizing at 5%-8% of total capital—don’t add leverage.

A sentiment turning point is the best entry. Don’t wait until it pumps and then regret it—when the market is in extreme panic, what it offers is often the golden pit. Do you think this washout is over? Drop your target price in the comments—I’ll keep an eye on the chart for you.