DEEP Surges 19% — Is a Breakout to $0.04 Now Inevitable?

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• DEEP recorded a strong 19% daily gain, reviving bullish sentiment.
  
• On-chain divergence suggests accumulation rather than speculation.
  
• $0.04 stands out as the next critical resistance level.

DeepBook (DEEP) is back in focus after posting a sharp 19% daily gain, reigniting bullish sentiment across the market. The surge follows a prolonged period of muted price action, making the sudden breakout stand out even more. With on-chain data and volume metrics now flashing supportive signals, traders are asking whether this move marks the start of a sustained trend — or just a short-lived spike.

Several indicators suggest the rally has more substance than typical bounce attempts.

On-Chain Divergence Signals Quiet Accumulation

One of the strongest signals supporting DEEP’s upside comes from the divergence between its adjusted price and Daily Active Addresses (DAA). The Adjusted Price DAA Divergence recently climbed to 0.031, reflecting growing engagement on the network alongside rising price.

Historically, this type of divergence points to accumulation rather than speculative chasing. Instead of entering only after large green candles, participants appear to be positioning ahead of potential continuation. That behavior often aligns with higher-conviction market phases, where investors anticipate further upside rather than quick exits.

If this trend in address activity continues, it could provide a foundation for DEEP to maintain its current momentum.

Rising Volume Validates the Breakout

Price gains alone can be misleading, but DEEP’s rally is being reinforced by a notable increase in trading volume. Higher volume during an upswing generally confirms that buyers are actively participating, reducing the likelihood that the move is driven by thin liquidity.

This alignment between price and volume strengthens the bullish case. It suggests that the market views the recent breakout as meaningful, rather than a temporary fluctuation.

Sustained volume at elevated levels would further improve the odds that DEEP can push into higher resistance zones.

$0.04 Emerges as the Next Major Test

From a technical perspective, attention is now shifting toward the $0.04 area. This level previously acted as a key turning point that led into the latest bearish phase, making it a natural resistance target.

Short-term pullbacks remain possible, especially after a double-digit daily gain. Profit-taking often leads to brief consolidation phases. However, as long as DEEP holds above newly formed support levels, the broader structure remains constructive.

Adding to the bullish outlook, the Stochastic RSI was recently in oversold territory, suggesting the rally may still have room to extend before momentum becomes overheated.

DEEP’s rebound is backed by improving on-chain activity, expanding volume, and signs of accumulation. While volatility is likely, the combination of these factors increases the probability of a push toward $0.04 in the near term.

Also Read: Upbit Lists DeepBook (DEEP), Token Surges 100% Before Sudden Pullback

Sustaining this trajectory will depend on continued network participation and buyers defending recent support zones.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.