Decred (DCR) saw one of the sharpest rallies in the cryptocurrency market this year, with its price jumping from under $20 to a peak of $70 within hours on Monday. The coin is currently trading around $50, still marking a gain of over 130% in the past 24 hours. The move comes at a time when most major cryptocurrencies are in decline, and overall market sentiment is locked in “extreme fear”, according to the Fear and Greed Index.
While the broader market struggles with renewed macroeconomic concerns and geopolitical uncertainty, DCR has defied the trend. The coin briefly entered the top 100 cryptocurrencies by market cap, becoming the best-performing major token of the day.
Read also: How to recognize a crypto presale scam? Full guide
Privacy Coins Rise
Part of this sudden spike may be tied to renewed investor interest in privacy-focused cryptocurrencies. Over the past several days, similar gains have been seen in coins like Zcash (ZEC) and Dash (DASH), which also feature optional anonymity features. Some traders might be rotating capital into Decred after missing earlier rallies in those assets.
On-chain activity shows that exchange balances of DCR have dropped significantly in recent weeks, and more than 60% of the total supply is currently staked, which may have contributed to the rapid price climb due to reduced liquid supply.
Read also: Dash Gains Over 50% in a Day – Team Says It’s “No Overnight Success”
Indicators Show Possible Short-Term Overextension
Today’s rally pushed Decred’s price well beyond key technical resistance levels, triggering signals typically associated with overbought conditions.
The Relative Strength Index (RSI), a momentum indicator, surged to 93 on the 14-day chart and 98 on the 7-day chart – levels that are rarely sustained and often precede short-term corrections. DCR also spiked far above its upper Bollinger Band, which currently sits near $34.57, suggesting the price has moved faster than typical volatility would support.
If the price begins to correct, traders may look toward Fibonacci retracement levels as potential support. The 61.8% retracement level near $34.42 and the 78.6% level around $24.75 may be areas of interest. At the moment, no sharp reversal has formed, but high volatility remains likely in the short term.
