With the crypto market under extreme stress, Decred recorded a major drop on its price charts. The altcoin crashed by 27%, falling from a five-month high of $37 to a low of $27 – A sign of intense downward pressure.
At the time of writing, Decred [DCR] was trading at $28.5, down 19.5% on the daily charts. Its latest downside market a sharp reversal from the crypto’s previous market trend.
Before this bout of depreciation, the altcoin had been on an upward trajectory, hiking by 18% on the weekly charts. However, on the back of escalating tensions in the Middle East, the wider crypto market fell. As expected, DCR crashed heavily too.
In fact, market activity suggested that some DCR holders may have capitulated and might be anticipating further losses now.
Momentum weakens amid mass sell-off
After news of another war broke out, the markets went into panic mode and participants turned to aggressive dumping.
Looking at the seller-to-buyer activity, seller strength surged to 76 while buyer dominance fell to 23. The surge suggested that most active market participants capitulated and began closing their positions, fearing further losses.
Seller volume rose to 867k while Buyer volume dropped to 943k – Indicative of a hike in sell activity. Unless market sentiment changes dramatically, sellers may be well-positioned to overpower buyers.
Worth pointing out, however, that while sellers have increased spending significantly, outpacing demand, buyers remain confidently active in the market.
Is the bullish structure still intact?
Despite the fall in DCR’s value, Decred’s market structure has remained overall bullish. AMBCrypto reported previously that the altcoin was trading within an ascending channel. At press time, this remained the case.
Historically, an ascending channel has pivoted an asset for a bullish continuation, with buyers buying every dip. If this pattern holds despite the current pullback, it will end with another leg up once external conditions cool down.
Additionally, the DMI Trend indicator showed that the altcoin was still holding within an uptrend. At the same time, the altcoin held above its MACD and SMA, with these indicators holding between $20 and $26.
With the momentum still showing bullish bias, a shift in market sentiment could trigger an explosive surge. Therefore, given that the market crash was largely driven by external forces, a cooldown will see DCR clear recent losses and target $35.
However, if the market shock and panic persists, Decred could drop to $24, with $20 acting as a key support level.
Final Summary
- Decred [DCR] crashed by 27%, hitting a low of $27 amid an intense market sell-off.
- Decred’s bullish market structure remains intact, with buyers stepping in to accumulate during the pullback.
