After its strong surge recently, darkcoin price showed signs of a pullback and appears to be gathering more bullish momentum. On its 1-hour chart against bitcoin from Cryptsy, the cryptocurrency has retreated to the moving averages, which appear to be holding as support.
- Darkcoin price has already bounced off the area of interest around 0.0200 and resumed its climb upon bouncing back above the moving averages.
- There seems to be a bit of hesitation among buyers on this recent bounce, as price is closing in on the previous highs.
- An increase in buying interest, which might be indicated by a pickup in volume, could lead to another strong climb past the 0.0250 handle and onto new highs.
- RSI has just hit the oversold region and climbed right back up, reflecting how buyers have jumped in to join the rally on a price pullback.
- The shorter-term moving average is still treading above the longer-term moving average on the 1-hour chart, confirming that the short-term uptrend is still intact and likely to continue.
- Once the moving averages edge further apart, the trend might gain momentum.
However, a downside break from the near-term support around 0.0200 could mean a potential reversal for the cryptocurrency. A downtrend could be confirmed if the short-term moving average crosses lower and edges further apart from the longer-term MA.
Profit-taking in the financial markets at the end of this month and the first quarter could mean significant price moves among assets, including darkcoin and other digital currencies.
Darkcoin price is still on an upward trajectory, following its recent strong break above key resistance levels earlier this week. Technical indicators such as the RSI and moving averages suggest a continuation of the rallies, as more buyers jump in the pullbacks to ride the ongoing trend. However, strong resistance around the previous highs might trigger sharp declines due to profit-taking.