DeepBook (DEEP) is generating buzz in the crypto market after its price surged by 35% within a short period. The surge follows a significant breakout above a downward trendline that had been in place since January, signaling a potential shift in sentiment and opening the possibility for a new all-time high (ATH).

DEEP’s Breakout and Surge

The breakout above the trendline occurred after DEEP consolidated around the $0.15 mark, indicating growing market interest. As of the latest data, DEEP was trading at $0.22731, marking an impressive 35% price increase. The upward movement was accompanied by an increase in trading volume, suggesting that market participants are becoming more confident in the asset’s potential.

Technical indicators also support the bullish trend. The MACD (Moving Average Convergence Divergence) line crossed above the signal line, a classic sign of a rising market trend. Additionally, the positive histogram reached a value of 0.01425, reinforcing the case for continued upward momentum.

Potential for a New ATH

DEEP now has the opportunity to revisit its previous all-time high of $0.34588, but this depends on maintaining its momentum. If the price stays above the $0.23 mark and continues to rally, the market could push towards the $0.34-$0.35 range. A break above $0.23 would further confirm the continuation of the bullish trend, possibly triggering the creation of a new ATH.

However, the price is not without risk. If DEEP fails to maintain its position above $0.23, it could fall back to the $0.15 level, which has recently become a critical resistance. A failure to hold this level might expose the asset to bearish pressure, potentially driving the price to the next support level near $0.10.

Market Sentiment and Trading Activity

A look at the liquidation heatmap reveals that long traders have significantly increased their leverage at the $0.2217 price point. Spikes in leverage between 5x and 15x were seen in the liquidation map, indicating that many traders are betting on continued growth. The accumulation of long positions between $0.2208 and $0.2280 suggests that traders are optimistic about further price gains.

On the other hand, short-sellers appear to be backing away. As short positions decrease, there is less resistance from the bearish side, which could facilitate a further rally. If the price continues to rise, it may force short-sellers to liquidate positions around $0.24 and $0.25, potentially causing a short squeeze and accelerating the price surge.

The Risk of Market Correction

While the bullish sentiment is evident, the market remains vulnerable to sudden reversals. If DEEP’s price drops to $0.22, leveraged long traders could face liquidation, triggering selling pressure that may push the price lower. This would put additional strain on the support levels and could lead to a short-term correction, even if the longer-term trend remains positive.

Conclusion

DEEP’s 35% surge has positioned the altcoin for potential further gains, with a chance to hit a new all-time high if momentum holds. Key levels to watch are $0.23 for support and $0.34-$0.35 for resistance. While the bullish trend is supported by positive technical indicators and increasing long leverage, the market remains susceptible to short-term volatility. How DEEP handles these key levels in the coming sessions will determine whether it can achieve a new ATH.