After rallying to $27, Decred [DCR] was rejected and dropped sharply to a local low of $21. The trend then reversed, with DCR climbing to a local high of $25.34 before pulling back slightly.
At press time, DCR traded at $24.12, marking an 11.72% daily gain. Over the same period, its market capitalization returned to the $400 million level, reflecting stronger capital inflows.
Decred bulls step in to defend key levels
After DCR dropped to a low of $21, it jumped into the market and bought, thus effectively defending key levels.
In fact, Buyer’s strength rose to 62 and has remained above 60 for two consecutive days. At the same time, sellers’ dominance declined to 37. This shift in power dynamics reflected investors’ conviction, as buyers signalled their anticipation of further gains.
Source: TradingView
Coupled with that, the Accumulation and Distribution Volume showed a higher accumulation rate for the first time in two days. At press time, Volume Moving Average rose to 93k, with the Volume and A/D volume jumping to 40k and 14k, respectively.
An increase in the accumulation volume indicated that sellers were displacing the market. Buy-Sell Volume further validated this fact, with buy volume increasing to 22.85k.
Source: Coinalyze
At the same time, the altcoin’s sell volume dropped to 18.78k, leaving the market with a positive buy-sell delta. A net buying holding at 31 was a clear sign of aggressive spot accumulation.
Historically, increased accumulation has tended to accelerate upside momentum, often a precursor to higher prices.
Is the upside momentum sustainable for DCR?
Decred experienced a trend reversal as buyers stepped into the market, bought the dip, and avoided further downside pressure.
As a result of the Buyer’s pressure, the altcoin’s Relative Strength Index (RSI) made a bullish crossover, hiking from 55 to 59 as of writing.
With the RSI edging into bullish territory, this suggests renewed market demand. At the same time, its Directional Movement Index (DMI) hovered at 27.
Source: Tradingview
The rising DMI indicated strengthened upward momentum driven by buyers. Such market conditions leave DCR in a healthy position with a high likelihood of a trend continuation.
Therefore, if the recently observed demand holds, Decred could flip $25 and target $27, where it was previously rejected. However, if momentum slows, creating a profit-taking window, DCR could pull back toward $20 again.
Final Thoughts
- DCR rebounded from a $21 slip, rising 11.7% to a local high of 25.34, then retraced to $24.12 at press time.
- Decred saw a trend reversal as buyers stepped in with conviction, bought the dip, and defended key levels.
Source: https://ambcrypto.com/decred-can-dcr-flip-key-price-level-and-retest-27/
