Decred (DCR) checks 55 USD when 60% of the supply is staking – What will happen next?

Decred (DCR) is on the verge of a strong breakout after reclaiming important support levels and converging within a symmetrical triangle pattern on the 4-hour chart. This coin previously surged to 70 USD on November 2 before entering the accumulation phase, continuing its broader fall from the historical peak of 250 USD.

DCR price is nearing breakout

The price of DCR is currently trading within a symmetrical triangle pattern, formed after a strong rally in November. The price maintaining above 22 USD – the highest low before the breakout – is also above the SuperTrend indicator after reversing on November 9, indicating that buying pressure remains strong.

The Bull Bear Power index reached 3.07, reflecting that buyers have been accumulating over the past three days. Meanwhile, the price is approaching the peak of the triangle, increasing pressure for an early breakout.

The next target above is around 55 USD, coinciding with the upper boundary of the triangle. A strong breakout above this level could push the price towards 70 USD – the peak of the month. Conversely, if the price falls below the low, the bullish structure will be broken, opening the possibility of a fall back to the 22 USD region or lower.

Source: TradingView## What does on-chain data say?

On-chain signals are currently reflecting a mixed market sentiment, but largely leaning towards the bears. Over the past three months, bears have maintained an advantage on the Spot Taker CVD, according to data from CryptoQuant.

However, this downward pressure mainly comes from retail traders. The Retail Spot Activity Index by Trading Frequency is at an unusually high level, and historical data shows that retail investors often buy at the peak, only to witness prices plummet shortly after.

The Spot volume bubble map also shows a clear distribution trend: the price of DCR continues to fall despite the active trading volume.

Source: CryptoQuantNevertheless, not all signals are bleak; some fundamental factors are still maintaining a positive tone, opening up the possibility for balance in the overall picture.

Is a breakout about to happen?

The Quantify Crypto tool is currently recording technical signals at a neutral level, slightly down from the previously slightly positive state. In the shortest time frame, the trend is bearish, while the 15-minute frame shows a reading of 54, and larger time frames are signaling bullish.

The circulating supply of DCR is currently at 17.12 million, with about 60% being staked through Decred. The high staking rate not only enhances the network's security but also reflects that market demand is still being sustained.

Source: Quantify CryptoCurrently, DCR is still experiencing a slight fall, but it is in a cautious accumulation phase. These movements are often a precursor to market reversals; however, the strong bearish sentiment in on-chain activity remains a risk to watch out for.

A breakout from any side will need clear confirmation to guide the next steps of this coin.

SN_Nour