Decred (DCR) jumps 64% in a week as it prepares to hurt PoW miners

NEW DELHI (CoinChapter.com) — Privacy coins such as Decred (DCR) have risen over the last 30 days. Russia-Ukraine tensions could be a likely fuel behind the rise of privacy coins, cryptocurrencies that preserve user anonymity by obscuring transactions on its network.

Decred’s native token, DCR, went from Apr 12’s low of $52.4 to reach an intraday high of $86.1 on Apr 18%, a jump of more than 64% in under seven days. Furthermore, Apr 12’s nearly 44% jump pushed DCR prices above seven-month-long descending trendline resistance.

In addition, the token’s upside movement is likely to trigger a technical pattern that might help DCR continue its uptrend. The Decred token’s 20-day exponential moving average (red wave) is likely to move above the 50-day EMA (yellow wave), forming a golden cross.

Traders and analysts usually interpret the pattern as an indicator of a definitive uptrend in the market.

Despite the bulls pushing prices, DCR failed to flip resistance from its 200-day EMA (green wave) near $79. The 200-day EMA has acted as resistance for the token since Dec 13, 2021. If DCR flips immediate resistance, the Decred token would likely target resistance near $86.5.

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Finally, DCR has resistance near $92.3, the token’s price level tested as support between May 19, 2021, and Dec 3, 2021.

Furthermore, momentum oscillator MACD charted a bullish crossover on Apr 18. A bullish crossover forms when the MACD line (difference of 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD).

DCR’s RSI Risks Becoming Overbought

The Decred token’s relative strength index moved into overbought regions on Monday. Traders often consider an overbought RSI a prelude to an upcoming trend reversal in bears’ favor. As such, overbought RSI levels often trigger sell-offs.

Prices pulled back as DCR’s RSI crossed into the overbought region, which dropped the RSI levels. As a result, the Decred token’s RSI is technically neutral, clocking 68.98 on the daily charts.

If the RSI becomes overbought again, DCR prices could fall to immediate support from its 100-day EMA (purple wave) near $65.1. Moreover, the Decred token’s 20-day EMA (red wave) and 50-day (yellow wave) form a support confluence for DCR near $58.7.

Finally, Decred has support near $53, a price level DCR has tested as support multiple times in 2022.

Also Read: Is ZCash a buy ahead of its “largest protocol upgrade” in April 2022?

That hard fork

In other news, Decred recently changed the PoW/PoS subsidy split from 60/30 to 10/80, drastically reducing miner rewards. The Decred team stated the reason behind the decision was malicious miners who have been ‘been working against the project for several years, if not since launch.‘

while this risk has been exposed specifically with decred, a similar strategy has likely been applied for every notable majority-pow coin.

people who care about pow and its fairness should be aware of this hidden risk.

— Jake Yocom-Piatt (@behindtext) April 14, 2022

Jake Yocom-Piatt, Decred’s project lead, shared that a vicious mining cartel could hodl ‘a vast inventory of‘ DCR tokens, which would harm the token’s price action in a bull market. Piatt stated that the new subsidy split would safeguard the platform’s native token.

The proposal passed with 91.7% of participants voting “Yes” and would likely go live in May. The new subsidy split promotes staking, which would remove DCR tokens from active circulation. As a result, the decision might be a bullish cue for the Decred token.

At the time of writing, DCR was trading at $68, up 13.25% on the day.