Decred Jumps on Listing by Korean Cryptocurrency Exchange Upbit
Decred (DCR), the popular altcoin that implements on-chain governance, has been given the go-ahead to trade on the South Korean cryptocurrency exchange, Upbit. The announcement was made during the Asian session of May 4 and the addition of the altcoin to the fourth largest exchange by 24-hour volume will no doubt be beneficial for the future path of Decred’s price and adoption.
Decred is Receiving More Attention in Asia
Upbit’s announcement had a significant effect on the DCR markets. The chart below shows DCR-BTC on the 4-hour timeframe on the Bittrex exchange, which jumped to a high of 0.0165 on May 4 following Upbit’s announcement. The price was previously pushed to a high of 0.012 after a Hong Kong influencer promoted Decred and claimed that ‘this cryptocurrency will set you up for life,’ in a Facebook post from April 26.
As the chart above shows, the resistance at 0.009846 has held strong with the price currently just beneath this level, near 0.0095. A 4-hour close above 0.009846 will provide a bullish signal, whereas support is found near 0.0086 and 0.0076.
Using the Fibonacci tool, we see that the recent spike hit the first Fibonacci extension level at 0.01471920. If we draw the Fibonacci extension levels for the most recent spike, we obtain a Fibonacci extension level of 0.02138035, which could serve as a good level to take profit on long positions or sell in the future.
Renko Chart Show Breakout is Near
Looking at the daily Renko chart below, we see that the market looks to continue the upward trend. The first green Renko formed in late April and a daily close above 0.00948816 would see another green Renko form.
Notice that 0.00948816 provides a resistance level according to prior peaks in the chart, with a further green Renko indicating a bullish breakout, i.e., a daily close higher than 0.01067418. In case of a bullish breakout, the next resistance lies at 0.01767413.
A bearish long-term outlook is only justified once we observe the formation of the first red Renko candle, which would require a daily close below 0.00593010.
With more volume potentially flowing to Decred, the addition to Upbit should be positive for the price action going forward. ‘Volume precedes price’ is a well-known adage amongst traders. The blockchain project also recently released the latest client on April 27, version 1.2.
The altcoin is also due to release an upgrade to offer privacy in the near future, but the details are under wraps. Moreover, as indicated by the project’s 2018 roadmap, a decentralized exchange (DEX) is in progress that will work using atomic swaps. Decred’s DEX will place principles over profits and ‘will be created as an open effort, which we hope will involve other cryptocurrency projects.’
A primer on Decred can be found here.
Disclaimer: The author owns a small amount of DCR. The author will look to add to his position if a new green Renko is formed on the daily timeframe.