Decred (DCR) recently demonstrated a robust trend reversal. After a sharp correction, the altcoin has shown significant upward momentum. This resurgence is driven by strong buyer conviction and key technical indicators.
Resilient Buyers Defend Key Levels
DCR experienced a notable dip to $21 following an initial rally. However, this price point quickly became a strong support. Buyers aggressively stepped in to defend these critical levels. Market data confirmed this shift in power dynamics. Buyer’s strength surged to 62, consistently staying above 60. Concurrently, sellers' dominance diminished to 37. This indicated a clear investor belief in future gains. Accumulation and Distribution Volume also showed a higher accumulation rate. The Buy-Sell Volume further validated this trend. Buy volume increased, while sell volume dropped. This resulted in a positive buy-sell delta and aggressive spot accumulation. Historically, such accumulation often precedes accelerated upside momentum.
Technical Indicators Signal Further Upside Potential
The renewed buying pressure led to a significant trend reversal for DCR. The Relative Strength Index (RSI) formed a bullish crossover. It hiked from 55 to 59, signaling renewed market demand. Furthermore, the Directional Movement Index (DMI) registered at 27. A rising DMI points to strengthened upward momentum. These conditions position DCR for a likely trend continuation. Should this demand persist, Decred could retest $25 and even target its previous rejection point of $27. However, a slowdown in momentum could trigger profit-taking. This scenario might see DCR pull back towards the $20 mark.
