Darkcoin price has recently climbed against bitcoin, but it could find short-term resistance. Drawing the Fibonacci tool on the latest swing high and low on the 4-hour or 1-hour time frames from Cryptsy suggests an ongoing correction for the cryptocurrency.
- Darkcoin price is currently hovering around the 50% Fibonacci retracment level, which might keep further gains in check.
- An extension of the rally could last until the area of interest closer to the 61.8% Fibonacci retracement level or the 78.6% Fibonacci retracement level.
- The 50% Fibonacci retracement level is around 0.0115 and the 61.8% Fibonacci retracement level is located at 0.0120.
- The shorter-term moving average on this time frame has just crossed above the longer-term moving average, reflecting an ongoing uptrend.
- Volume has weakened, indicating that darkcoin traders are waiting for more momentum and direction before trading this cryptocurrency.
Further gains past the Fibonacci retracement levels could lead to a move up to the previous highs around 0.0135. If this holds as resistance, DRK/BTC could stay in range and eventually edge back to the previous support at 0.0100.
Scrolling further back to longer-term darkcoin price charts reveals that the 0.0100 is a very strong support level, which has kept declines in check so far this year. A convincing break below this area, however, would mean that darkcoin could lose further value against the bitcoin in the longer run.
On the other hand, an upside break past resistance would also mean a breakout above the descending triangle resistance on a longer-term darkcoin price chart. This could eventually lead to a climb up to this year’s highs around the 0.0161 levels.
If the moving averages continue to trade in this fashion and move further apart, the uptrend could gain steam in the coming days. However, better developments in the bitcoin industry still seem to be favoring this particular currency over the darkcoin.