Decred has been stuck in consolidation for quite some time already but just recently made a sharp upside break on news of its listing on Binance. This suggests that a rally may be underway, possibly lasting by the same height as the rectangle formation.
Stochastic is heading up to signal that buyers still have some energy left in them but the oscillator is nearing overbought levels to signal exhaustion. Turning lower could lead to a return in selling pressure. RSI is already on the move south after hitting overbought territory, which suggests a correction may be due.
Applying the Fib retracement tool on the latest swing low and high shows that the 50% level lines up with the top of the former range, which might now hold as support. A larger pullback could last until the 61.8% level at $44 while a shallow dip could already bounce off the 38.2% Fib at $48.55. If any of these levels keep losses at bay, a move back to the swing high and beyond could be seen.
As Binance mentioned in its announcement, the exchange will list Decred and open trading for DCR/BNB and DCR/BTC trading pairs at 2018/10/24 04:00 AM (UTC). It also shared links on Decred, fees, and trading rules.
Another factor that could sustain the gains is the company’s development of Politeia, a proposal system, on its mainnet. This will involve the distribution of 570,000 DCR tokens among the project’s stakeholders and enable them to have the right to propose, discuss, collaborate on, and fund new projects, initiatives, and consensus change on Decred mainnet.
However, it also noted that if stakeholders use this unwisely, it can have severe consequences for the project’s development, as the developers note:
It is important to understand that Politeia is a [potent] tool: it can enable all manner of positive developments for Decred, but if used unwisely, it can lead to a wide variety of problems.
Images courtesy of TradingView.
