Sellers continue to run amok in Darkcoin as the price plunges to new lows. Thanks to the sell-off, each Darkcoin has gotten significantly cheaper and can be bought for 0.0172BTC. Investors may also consider adding to their long positions as the price nears a crucial support level.
The 240-minute DRK/BTC price chart above, taken from bitcoinwisdom.com, has been analyzed using technical analysis to reveal some noteworthy points from a trading perspective.
- Chart Structure – The price trend has been disappointing, to say the least. Ever since Darkcoin hit a high of 0.02495BTC, price has been sliding downwards slowly and steadily. Moreover, the recent slide has been supported by average or more than average volume, which indicates that bears are getting confident with time. The price is now nearing a crucial support level of 0.01617 BTC, from which a strong rebound can be expected.
- Bollinger Bands – In an absolute failure, the price has failed to climb above the 20-4h simple moving average built in the Bollinger Bands (check the price chart). Also, the base of the BB has been breached and hence, a major move in either direction can be expected.
- Moving Average Convergence Divergence – The MACD indicator and the associated components are deep into the negative zone. The MACD value is -0.001491 while the Signal Line value is -0.00139. The Histogram is at -0.0002021. Sustenance of the momentum indicator in the sub-0 region may not bode well for the altcoin.
Conclusively, it can be said that the selling may abate near the support level of 0.01617BTC and that Darkcoin may spring up a positive surprise. Short sellers may look at booking partial profits while fresh long trades should be considered with a stop-loss (closing basis) placed below the horizontal support.