Decred Price Analysis – Daily cloud metrics bullish

The Decred (DCR) market cap currently stands at US$1.47 billion, ranking DCR 49th on the Brave New Coin market cap table, with US$59 million in trading volume over the past 24 hours. The DCR price is up 8.31% in the last 7 days.

About Decred

Decred’s v1.6 (aka Hidden Hydra) launched in January. The project says this is the biggest update in its history with Decred’s history with several major and numerous smaller upgrades. Full details are available in this project Medium post.

Decred launched in 2016 and was originally a fork of the Bitcoin codebase. Decred incorporates governance functions using a hybrid Proof of Work (PoW) and Proof of Stake (PoS) consensus system. The hybrid consensus system attempts to shore up the vulnerabilities of both designs.

PoW miners create the blockchain and earn a portion of the block reward. PoS stakeholders purchase tickets that earn a portion of the block reward, participate in on-chain and off-chain network governance, and validate blocks discovered by miners.

A classic PoW model favors entities with access to cheap electricity and the capital to invest in mining infrastructure. This model is subject to mining centralization and 51% attacks, whereby a miner or pool with more than half of the hash rate can temporarily control the blockchain and the transactions.

A classic PoS model favors early adopters who accumulated coins, typically during an initial distribution. The benefits of PoS include decreased infrastructure costs as well as the ability for any user to directly participate in network governance decisions. PoS only blockchains are subject to stake grinding vulnerabilities, which effectively allows a majority PoS miner to control the blockchain.

Technical Analysis

A roadmap for trend confirmation and strength can be deduced using Exponential Moving Averages, Volume Profile of the Visible Range, pivot points, the Ichimoku Cloud, Pitchforks, and chart patterns. Further background information on the technical indicators discussed below can be found here.

Watch full DCR TA on YouTube

• On the daily price chart for the DCR/USD pair, the 50-day Exponential Moving Average (EMA) and the 200-day EMA crossed bullish on November 19th. The 200-day EMA at US$47 should now act as support. Since August 2018, the spot price has mainly held below the 200-day EMA with an active Death Cross.

• The Volume Profile of the Visible Range (VPVR, horizontal bars chart below) now shows support in the US$30 zone, with stronger support at US$16.50. Yearly pivots also show support and resistance at US$113 and US$137, respectively. Additionally, there are no active bullish or bearish divergences on volume or RSI.

• Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

• On the daily chart, Cloud metrics are mostly bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the spot price. The trend will remain bullish so long as the spot price remains above the Cloud at US$50. Kijun support also currently sits at US$104.

• On the weekly chart for the DCR/BTC pair, trend indicators have leaned bearish since early 2018 and have recently flipped neutral. Since January, the spot price popped above the 200-day EMA and daily Cloud. The spot price is also within the VPVR point of control (red horizontal line) at 0.0026 BTC, the highest volume zone historically, which should now act as a consolidation area. The next VPVR resistance zone sits at 0.0040 BTC. Additionally, there are no active bullish or bearish divergences on volume or RSI.