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