Decred Price Analysis: On-Chain Activity Signals Potential Uptrend Ahead

Decred Price Analysis – Fundamentals and Technical Analysis Suggests Continued Uptrend

The on-chain activity of Decred (DCR) has seen an increase in recent months, which may be attributed to a combination of decentralized exchange (DEX), privacy, and staking initiatives. Currently, the price of DCR is 84% below its all-time high of $118, reached in May 2018, with a market capitalization of $221 million and a trading volume of $7.35 million in the last 24 hours. This indicates a significant level of market activity and interest in the cryptocurrency.

"The hybrid consensus system attempts to address the weaknesses of both PoW and PoS."

Decred utilizes a hybrid consensus mechanism combining Proof of Work (PoW) and Proof of Stake (PoS). PoW miners create the blockchain and receive a portion of the block reward, while PoS participants acquire tickets that also earn them a share of the block reward and allow them to participate in network governance. The inflation rates for Decred and DASH are currently at approximately 16% and 6.75%, respectively, with annual staking yields after inflation at -5.62% for DCR and -0.85% for DASH.

In terms of governance, DCR stakeholders can vote on code updates and budget proposals through a blockchain-based public proposal system called Politeia, which went live in October 2018. This system allows for a democratic approach to decision-making within the network, enhancing community involvement.

Market Dynamics and Technical Indicators

The trading volume for DCR has been predominantly led by Tether (USDT) and Bitcoin (BTC), with DCR pairs available on exchanges such as Binance, Huobi, and Bittrex. Notably, the DCR trading pairs were listed on OkCoin in March, and Bittrex added a DCR/USD pair in November. However, DCR is currently not available for trading on Coinbase or Bitfinex, which may affect its market reach.

Technical analysis indicates that the DCR/USD pair has been in a bearish trend since the end of August, with the 50-day EMA and 200-day EMA crossing bearishly. However, the price has recently been moving above the 50-day EMA and below the 200-day EMA, suggesting a potential bullish crossover could occur if upward momentum continues.

"The current price is rapidly approaching the oversold area, indicating ideal buying conditions."

Currently, the price is near a significant support level at $16, with historical support dropping to $5 if the December low of $13.80 does not hold. The Ichimoku cloud metrics are neutral, indicating that a long entry signal will only be triggered when the spot price rises above the cloud.

Conclusion

The fundamental data for Decred shows a plateau in PoW hash rate over the past six months, alongside a notable increase in PoS ticket holders. The on-chain activity has increased, likely due to the introduction of DEX, privacy features, and staking initiatives. The technical analysis for the DCR/USD pair remains neutral, with indicators suggesting the end of the bear market and the potential for an upward trend.

As Decred continues to develop its features and enhance its governance model, it may attract more users and investors, particularly if it can successfully implement its DEX and privacy initiatives. The market will be watching closely for any developments that could influence the price and adoption of DCR.

Source: Brave New Coin

Sources:

• Decred-Preisanalyse – Fundamentalanalyse und technische Analyse deuten auf anhaltenden Aufwärtstrend hin