Selling in Darkcoin seems to have abated near the crucial support level of 0.01615, a possibility of which was discussed in yesterday’s analysis titled Nearing Support. The value of each Darkcoin is however, relatively unchanged at 0.01730BTC.
Technical analysis of the 240-minute DRK/BTC price chart reveals that a near-term bottom has been reached and prices may consolidate (if not rise) from here on.
Chart Structure – I had discussed earlier that level of 0.01617BTC should act as a strong floor and that selling will cease near this level. As can be seen from the chart above, the price touched 0.01615BTC and then staged a quick rebound to 0.01879BTC, before being subdued by the 20-4h simple moving average of 0.01880BTC.
Bollinger Bands – The lower range of the Bollinger Band is now acting as a “soft support” to the Darkcoin price. Thus, it has given birth to an extremely small price range; with lower range acting as the support and the 20-4h SMA acting as the resistance.
Volume – The latest rebound was supported by a spurt in volumes (see the last green candle in the volume section). This indicates that value buyers are looking to enter the cryptocurrency at lower levels.
Moving Average Convergence Divergence – The MACD indicator and the associated values are in still in the negative region, however, in a slight positive, the MACD indicator has turned less negative from yesterday’s reading of -0.001491 to the current value of -0.0005478. The Signal Line value is at -0.0003671 and the Histogram value is at -0.0003612.
Conclusively, I would advise that short positions be reduced to a minimum and long positions be considered. However, this instruction is dependent on the assumption that Darkcoin will hold 0.01615BTC. Any fall below this level should be seen as a red flag and all long positions must be squared off.