Darkcoin has failed to hold on to early gains and was last trading at 0.0109BTC. The depreciation in the value of Darkcoin can be attributed to the sharp rise in the price of the most loved cryptocurrency, Bitcoin. As Bitcoin continues to push upwards to cross $300, Darkcoin will feel the heat.
Technical Check: Stay Cautious!
A precise technical analysis on the daily DRK/BTC price chart, taken from www.bitcoinwisdom.com points to bearish connotations for the pair.
- Fibonacci Support – Darkcoin has deeply disappointed the investors ever since it peaked out at 0.016BTC in February. The pair has been facing tremendous selling pressure as the counter currency, Bitcoin continues to march upwards. The pair is currently sustaining above the crucial 50% Fibonacci retracement level of 0.0105. As can be seen from the chart above, the market has for long respected this level and a close below it will seriously dent the bullish mood, following which the price may collapse to 0.0092, i.e. the 61.8% Fibonacci retracement level.
- Inherently Weak – The Relative Strength Index value of 44.9 suggests that bears have the upper hand at the moment. The downward nature of the strength index reading since mid-Feb also lends confidence to the bears.
- The Bollinger Base – The latest value of each Darkcoin also coincides with the lower range of the Bollinger band. With lower range acting as a support, bulls should strive to make gains, however, that should be used as an opportunity to sell as the overall price structure fails to inspire confidence.
Conclusively, the technical indicators and the market price point to further losses in Darkcoin. Any rise presented would be purely technical in nature and an escape route for investors.