The current price of a certain DEX token is $5.96, and this level is worth a close look.

Honestly, this recent decline has completely wiped out the previous rally, bringing it back to the $4.00-$6.00 range that has been tested for two years. For those looking to buy the dip, it feels like returning to "factory settings"—the valuation has reset to a low level.

**From a trend perspective, this is a classic left-side entry point**

As a leading infrastructure token in DeFi, its fundamentals are solid. Although the price movement has been relatively dull, the $6 and below range has repeatedly proven to be a safe zone. The downside potential is limited, but the upside potential is significant—this is where the risk-reward ratio is favorable.

**Key levels to remember**

Looking upward, short-term resistance is around $8.00-$9.00, which is the top of the long-term consolidation range and also the starting point of the previous rally. A confirmed breakout here would signal a bullish trend. Further resistance at $12.00-$15.00 is stronger, representing previous trapped positions and unlikely to be touched in the short term.

Downward, the $4.00-$5.00 zone is a historical strong support, touched multiple times but never effectively broken. It’s the last line of defense for bulls and roughly the cost basis for major institutions. Currently, the $5.50-$6.00 range is where the candlestick activity is concentrated.

**Volume signals are quite interesting**

When the price surged to $16, volume spiked significantly, but as it fell back to $6, trading volume drastically shrank. What does this indicate? Reluctance to sell. Long-term holders are unwilling to cut losses at this level, and the market is waiting for new positive news (such as proposals for fee switches).

**Advice varies for different people**

If you already hold this token, the only advice is: wait. The most fascinating aspect of this cycle is that—despite the strong fundamentals—the price remains stubbornly immobile. Selling at around $6 would be like falling just before dawn; there’s no real need.

If you don’t hold any, this level is suitable for dollar-cost averaging. Especially for large funds, this is a good opportunity for a stable allocation. You can buy in stages within the $5.00-$5.80 range. Mid-term, expect a return to the top of the range at around $8.00 (about 40% increase), and for the long term, aim for new highs.

**In summary**

This token has now returned to a comfortable zone—low risk with moderate returns, making it a relatively stable investment.