Darkcoin price has sold off in the past days but a bounce might be due, as it is testing a key support level. It is hovering around the 0.0100 and 0.1050 BTC levels for the past few hours and this area has held as a floor for darkcoin price declines last month.
Trading activity has been subdued in the past days, with some traders booking profits at the support area. Increased upside momentum could draw more demand for darkcoin if the support at 0.01 mark holds.
However, the MA behavior on the 4-hour chart on bitcoinwisdom.com suggests that a downside break is possible, depending on how market catalysts turn out.
- The shorter-term MA is still moving below the longer-term MA, reflecting an ongoing downtrend and indicating that the path of least resistance is to the downside.
- The short-term MA is also trading very close to price action, suggesting a buildup in interest and a potential breakout in either direction.
- The moving averages are moving farther apart, also confirming the higher odds of further declines in darkcoin price.
On the other hand, candlestick patterns around the current support zone favor a bounce.
- Price has tested the support earlier in the week and failed to make a break lower, creating a long-wicked candle at the bottom instead.
- Candlesticks forming close to the support level have also exhibited long wicks, indicating that there is a lot of buying interest at the current support zone and that it might continue to hold.
A strong bounce could lead to a pullback to the nearby resistance levels. These are located at the 0.011 darkcoin price level and at 0.115, which has been the previous resistance on the pullback. A higher rally could lead to a test of the longer-term moving average resistance, which could hold as a dynamic inflection point.
- The longer-term MA is also located at the 0.0115 BTC price level, in line with the previous price correction on the latest drop.
- There is some consolidation around the 0.012 to 0.0125 BTC price level, which indicates that this is also another area of interest.
- A break past the nearby resistance levels could spark a move to the higher ceiling at 0.0135 BTC mark, which has held as resistance in February.
A previous article analyzing the technical patterns of darkcoin price suggests that the sideways price action could continue and that the current support zone would keep losses in check. As it turns out, this lines up with a retracement level on longer-term time frames and that darkcoin price has been on a strong climb previously.
Zooming out to the daily time frame reveals that the price high reached 0.0160 earlier in the year, with a bounce off the consolidation support likely to spark long-term gains back to the previous resistance. Of course this could hinge on developments in the bitcoin cryptocurrency, which has also been gaining traction recently.
Darkcoin has been on a strong climb earlier in the year but pulled back recently after making a test of the 0.16 resistance. Price is now testing a key support zone, with candlesticks and technical indicators favoring the possibility of a bounce.
Charts from Bitcoin Wisdom