What drove the 550 surge of DEEP cryptocurrency in 7 days

Coin World News Report:
Deep Soared Over 550% in the First Week
Can the Altcoin Based on the Sui Dynasty Continue to Rise in Mixed Signals?
On October 14th, DeepBook Version 3 (V3), a new and reportedly revolutionary decentralized exchange (DEX), was launched on the Sui Network.
Its native token, DEEP, was also launched on the same day and saw a surge of over 550% in the past week.
This altcoin jumped from $0.016 to $0.09, a five-fold increase, but defended at $0.08 at the time of writing.
According to the team’s announcement, one of the positive price catalysts for DEEP may be its widespread use in the Sui-DeFi system.
It serves as the governance token for the protocol, but can also be used for rewards and trading fee rebates.
“DEEP can be used to pay for transaction fees, and users who trade more will receive fee discounts, thus incentivizing more people to participate. These features collectively enhance liquidity and make trading on DeepBook more efficient.”
Furthermore, DeepBook DEX utilizes the Central Limit Order Book (CLOB) to maintain low fees, leveraging Sui’s high-performance design.
According to the team, this sets it apart from generic DEX competitors that rely on Automated Market Makers (AMMs) like Uniswap.
“AMM gave DeFi a good start, but with CLOB, we’re improving the DeFi game here. It’s durable, low slippage, high liquidity, and high precision – just the way you like it.”
Will DEEP’s upward trend continue?
On October 20th, the token surged by 49%, adding to its impressive first-week performance.
Although it experienced a slight pullback at the time of writing, crowd sentiment on CoinMarketCap overwhelmingly favors the token.
However, traders’ positions indicate that a large number of speculators are shorting the asset. According to Coinglass’s long/short ratio, 52% of positions are short on DEEP, reinforcing a slightly bearish outlook.
The decline in Open Interest (OI) suggests a similar short-term bearish sentiment.
It has dropped by nearly 8%, exacerbating capital outflows from the DEEP futures market.
Furthermore, the decline in OI also indicates waning interest from speculators in the asset. This could exacerbate the pullback and drag DEEP’s price down.
In addition, there are more liquidations of long positions than short positions, further supporting the short-term bearish outlook.
Read DeepBook [DEEP] 2024-2025 Price Forecast
If the bearish trend persists in the short term, DEEP may retreat to $0.05 (50% Fib level), especially if it falls below $0.08.
However, another rebound could push it towards $0.11. Therefore, $0.05 and $0.11 are key levels to monitor in the short term.