Decred (DCR) Technical Analysis: Breakout Possible, but Which Way Will it Go?

Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses incurred as a result of this information.

articleStartImage

Decred survived another red market today, holding on to a 4% gain against BTC and still one of the best performers in the top 30 over the last 48hrs. This sudden surge in interest has come at a great time for the project and is likely due to a number of new developments announced by the Decred team this week;

  • On September 12th, popular Chinese exchange, KuCoin, announced the listing of Decred on the platform which has helped encourage much needed bullish support during this market downturn.
  • The Decred dev team have also recently released the new 0.0 testnet on September 10th, which includes ‘merged debits’, bug fixes and sidechain tracking.

Right now, the asset is consolidating inside a triangle pattern which could break out either way depending on the fragile market at the moment. Can bulls continue to prop up the asset through the bear market, or will selling pressure break this positive sentiment? Let’s take a look.

[embedded content]

On the 4hr DCR/BTC chart we can see that the asset is currently oscillating inside a support region between 627,769 Sats and 543,425 Sats, having fallen for most of July and August without relief.

There are two possible outcomes that could arise from the current pattern that DCR is tracking inside of; one is Bearish, the other is Bullish.

Decred (DCR) Technical Analysis: Breakout Possible, but Which Way Will it Go? 1

This descending triangle pattern is typically a bearish continuation pattern, where the base support breaks after increasing selling pressure overpowers bullish traders. After the base line breaks we would expect the asset to find support much further down, in this case somewhere around the 447,032 Sats mark.

Decred (DCR) Technical Analysis: Breakout Possible, but Which Way Will it Go? 2

In some cases however, bulls can actually reject this pattern and break out above the downtrending resistance. After overcoming this level, we would expect to see DCR hit the resistance level at the top of the red channel before finding a new support along the top of the triangle pattern. From here, bulls should be able to launch through the channel and test the new resistance above. In this case, somewhere at the 732,195 Sats level.

So which way will it go?

Looking at the indicators we can see a number of short-term bullish signals over a closer 2hr candle range;

  • On the Ichimoku indicator we can see a supporting Kumo stretching out in front of the price action with a bullish T/K crossing. Candles are also starting to pass above the kumo which is a promising reversal signal if it can hold out.
  • On the CMF we can also see that the indicator line is above the zero line, which suggests buying pressure is increasing.
  • The ADX (Average Directional Index) also spiked >30, which tells us that the current uptrend is strong.

Decred (DCR) Price Targets

All price targets are set from the 570,000 Sats mark where the asset is currently valued.

Decred (DCR) Technical Analysis: Breakout Possible, but Which Way Will it Go? 3

Price Target 1: Bullish impulse leg towards earlier resistance at 588,996 Sats (3.33% ROI)

Price Target 2: Retest pattern resistance around the 606,050 Sats mark (6.32% ROI)

Price Target 3: Breakout of the pattern towards the upper channel resistance at 627,769 Sats (10.13% ROI overall)

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 60,188.00
ethereum
Ethereum (ETH) $ 4,032.23
binance-coin
Binance Coin (BNB) $ 474.33
tether
Tether (USDT) $ 1.00
cardano
Cardano (ADA) $ 2.12
solana
Solana (SOL) $ 188.62
xrp
XRP (XRP) $ 1.08
polkadot
Polkadot (DOT) $ 42.33
dogecoin
Dogecoin (DOGE) $ 0.255608
usd-coin
USD Coin (USDC) $ 0.998411
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 60,188.00
ethereumEthereum (ETH)
$ 4,032.23
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 619.10
litecoinLitecoin (LTC)
$ 191.70
bitcoinBitcoin (BTC)
51.687,95
ethereumEthereum (ETH)
3.462,78
tetherTether (USDT)
0,858775
bitcoin-cashBitcoin Cash (BCH)
531,67
litecoinLitecoin (LTC)
164,63
bitcoinBitcoin (BTC)
43,676.93
ethereumEthereum (ETH)
2,926.09
tetherTether (USDT)
0.725675
bitcoin-cashBitcoin Cash (BCH)
449.27
litecoinLitecoin (LTC)
139.11

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin60,453 0.20 % 2.13 % 1.17 %
Ethereum4,039.4 0.20 % 0.43 % 4.80 %
Binance Coin474.81 0.10 % 1.84 % 1.49 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.130 0.22 % 1.70 % 2.82 %
Solana190.32 0.51 % 5.85 % 20.25 %
XRP1.080 0.29 % 1.27 % 5.07 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2578 2.87 % 4.47 % 8.04 %
USD Coin1.000 0.14 % 0.20 % 0.17 %

bitcoin
Bitcoin (BTC) $ 60,188.00
ethereum
Ethereum (ETH) $ 4,032.23
binance-coin
Binance Coin (BNB) $ 474.33
tether
Tether (USDT) $ 1.00
cardano
Cardano (ADA) $ 2.12
solana
Solana (SOL) $ 188.62
xrp
XRP (XRP) $ 1.08
polkadot
Polkadot (DOT) $ 42.33
dogecoin
Dogecoin (DOGE) $ 0.255608
usd-coin
USD Coin (USDC) $ 0.998411