Decred (DCR) has been on a steady decline over the past three days. In fact, the altcoin’s price action recently tested a key supply zone near $34.40, before facing strong rejection. Over the last 24 hours alone, the token dropped by 10% despite some upside at press time.
$28 becomes critical demand level
DCR is now testing a major demand zone at around $28. At the time of writing, early signs suggested that buyers may be attempting to step in. The Stochastic RSI was aggressively dipping towards an oversold region.
Demand zones often serve as short-term stabilisation points for buyers looking to invest on the dip. However, repeated selling pressure can weaken them.
The reaction at $28 will likely determine the next directional move.
On-chain metrics send mixed signals
Most on-chain indicators seemed to be neutral. There was no strong momentum signal in either direction. The token’s whales appeared to be dormant, despite the recovering buyer activity.
This hinted at a market in a decision phase.
Neutral momentum combined with strong support can favour a bounce. However, a lack of strong bullish confirmation would only increase further uncertainty.
The number of transactions on the network dropped significantly over the last 24 hours too. Updates like these could send mixed signals to market participants.
DCR’s fall in transactions could also point to a fall in selling pressure. More so given that the market is now buckling under the ripple effects of geopolitical tensions in the Middle East.
As it stands, Decred traders could be observing the market reaction at the current key zone before chipping in for long positions.
Despite the negative indicators, however, Spot Taker Cumulative Volume Delta data hinted at a surging buyer dominance. In fact, over the last few days, the number of investors and traders in long positions has surged.
Such a surge might be strategic. Especially given that the altcoin’s price action has been testing a key point of interest lately.
What’s ahead for DCR?
Two scenarios stand out for the altcoin’s price action. In case buyers defend the $28-support zone and volume increases, a short-term rebound towards the mid-range resistance could unfold.
On the other hand, if the demand zone fails to hold, selling pressure will accelerate. Then, the price would seek a lower support zone.
For now, DCR is at a technical crossroads. The next move depends on whether buyers can convert this demand zone into sustained upward momentum.
All in all, with the altcoin buyers’ dominance gaining at the expense of fading selling pressure, DCR’s price action is more likely to reverse back to a bullish run.
Final Summary
- DCR fell by 10% after rejecting the $34.40 supply zone, with the altcoin expected to test the critical support at $28.
- Neutral indicators hinted at a market at a crossroads as buyers attempt to defend demand.
