- Decred makes upgrades to its public proposal system.
- DCR surges over 19% in less than 24 hours.
- A look at the 4-hour chart reveals DCR could retrace to $16 before it continues rising.
Autonomous cryptocurrency Decred (DCR) is skyrocketing after its community welcomed new developments surrounding Politeia, its own censorship-resistant blockchain-anchored public proposal system for funding projects.
In the last 24 hours, DCR jumped over 19% to hit a high of $18.50. The upward momentum was timed by a well-known technical pattern. Now, this cryptocurrency could be preparing for a further advance.
Decred Technical Analysis
The recent bullish impulse that took Decred to rise from a low of $15.50 to a high of $18.50 seems to be the result of a bull pennant. The bull pennant is a continuation pattern, which has developed on DCR’s 12-hour chart since Oct. 25.
The 26% upswing that DCR went through between Oct. 25-26 formed the flagpole of this technical pattern. Meanwhile, the consolidation phase between Oct. 27-31 formed the pennant, which led to a breakout in the same direction of the previous trend.
Decred broke out of a bull pennant, and the next level of resistance is around $20.85. | Chart: TradingView
Now, DCR is trading above the 7-three-day moving average, which is a positive sign for its uptrend. Additionally, the moving average convergence divergence (MACD), which helps determine changes in a given trend, recently turned bullish. The crossover between the 12 and 25-week exponential moving averages signals a further upswing.
A spike in the buying pressure behind this cryptocurrency could take Decred to the next resistance level on its 3-day chart. The barrier sits around the 30-three-day moving average, which is currently trading around $20.85.