The latest price action in Darkcoin has clearly taken me by surprise, and bears will be seen scampering for covers if they do not reduce or exit their short positions immediately. Just when it looked like the bulls were losing their grip and that bearish momentum will intensify in the coming sessions, the bulls made an exceptional comeback paring a major percentage of its losses since March 30.
Each Darkcoin is currently worth 0.01657BTC.
The price action and the technical indicators overlaid on the 240-minute DRK/BTC price chart present a strong case for the buyers.
Price Action – As can be seen from the chart above, Darkcoin is staging a U-shaped rebound and has nudged its head slightly above the 20-4h simple moving average. With the last bullish candle, Darkcoin has also crossed the previous support level of 0.01617BTC on the upside.
Bollinger Bands – The cryptocurrency has taken support from the lower range of the Bollinger Bands and is once again testing the 20-4h simple moving average. For long, the market has found it difficult to cross this level and hence, if it manages to cross it decisively this time, Darkcoin may well witness a swift upmove.
Moving Average Convergence Divergence – For the past one week, the Histogram had been maintaining a negative bias but, the latest surge in price has helped the MACD indicator with a value of -0.0007543 cross over the Signal Line with a value of -0.0008111, thereby pushing the Histogram in the positive territory. The latest Histogram reading is 0.0001136.
Having stated the above, I would like to add that only a decisive closing north of the stated moving average should be viewed as a strong buy signal. However, bears are advised to lighten (or exit) their positions to minimize the risks. Expect increased volatility in the coming sessions.