Decred price went parabolic on Saturday as demand for the privacy token rose. DCR rose to a high of $64.42, which was the highest point since May 9th of this year. It has risen by more than 237% from its lowest level this year, bringing its total market cap to over $667 million.
Decred is a relatively unknown cryptocurrency that uses dual-model methods for consensus. It uses both a proof-of-stake (PoS) and proof-of-work (PoW) consensus models. The dual system helps to reduce the number of attacks in the network since a block must include three or more ticket votes to be valid. Also, blocks must be broadcast on the network as they are mined for the chain to proceed.
Decred, like Monero, aims to improve the blockchain technology that bitcoin introduced. The challenge with bitcoin is that its transactions are public and can easily be tracked. For example, the FBI managed to track funds that were stolen during the Colonial Pipeline hack.
It is unclear why the DCR price went parabolic on Saturday since there was no major news. As such, this could be part of a pump and dump scheme since it happened in a low-volume environment. On the four-hour chart, we see that the Decred price has been relatively calm recently. It then went parabolic and moved from less than $30 to a high of $64. As it rose, it managed to move above the important resistance level at $31.33, which was the highest point on July 16th.
Therefore, there is a likelihood that the coin will retreat sharply in the coming days as holders take profit. If this happens, it will retest the support at $31.33, which is about 35% below the current level. A move above the resistance level at $60 will invalidate the bearish view.
This post was last modified on Aug 06, 2022, 10:29 BST 10:29