Decred Price Analysis: Breakout Attempt
Bullish higher highs bode well for DCR.
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- Decred has a bearish short-term and medium-term trading outlook
- The four-hour time frame shows that a bearish falling wedge pattern has formed
- The daily time frame shows that the DCR/USD pair is trapped within a triangle pattern
Decred buyers are attempting to rally price above the psychological $20.00 resistance level, following a strong reversal from the $17.50 level earlier this week.
The DCR/USD pair has rallied by over 30 percent from its November price low and is currently trading around 10 percent above its December price low.
Technical analysis shows that the DCR/USD pair is trapped within a large triangle pattern on the daily time frame. A break above the top of the triangle pattern, around the $20.00 level, could provoke a strong upside move.
If a bullish technical breakout takes place, the $24.00 level appears to be the likely target. The DCR/USD pair’s 200-day moving average is converging with the neckline of a head and shoulders pattern around this area.
The four-hour time frame shows that a bearish rising wedge pattern has formed. A break under the wedge could force the DCR/USD pair back towards the November monthly low.
The DCR/USD pair is also creating bullish higher lows and moving against the broader cryptocurrency market, which is indeed a positive development.
The Relative Strength Index on the daily time frame is bullish, while the MACD indicator is close to issuing a buy signal.
According to the latest sentiment data from The TIE, the short-term sentiment towards Decred is neutral at 47 percent, while the overall long-term sentiment towards the cryptocurrency is bearish at 36 percent.
The four-hour time frame shows that key technical resistance is now located at the $20.00 and $24.00 levels.
Key technical resistance over the medium-term is located at the $29.00 and $35.00 levels.
The four-hour time frame is showing that the DCR/USD pair has strong medium-term technical support around the $17.50 and $15.00 levels.
Critical long-term technical support for Decred is located at the $12.00 support level.
Decred is moving against the broader market downtrend and attempting to force a short-term breakout above the $20.00 level.
The DCR/USD pair could rally towards the $24.00 resistance level if a bullish breakout takes place.