Journalist
Published:
Decred (DCR) was among the top gainers on February 22. Prices of the token have climbed 14% in the last 24 hours.
The timing of the rally appears perfect as a significant percentage of grid supply remains blocked.
According to a recent tweet from an analyst, 72% of the liquidity supply is locked up, of which only 28% is available to the market. This restricted supply creates a structural bullish bias.
The technical breakout confirms a change in dynamics
On the daily chart, DCR broke out of a bullish symmetric triangle consolidation pattern. Usually, breakouts of such formations often signal the continuation of the trend.
At the same time, the RSI has just rebounded from an oversold zone. This suggests that selling pressure has weakened and buyers are regaining control.
The token’s bullish momentum was rebuilding after weeks of consolidation.
Source: TradingView
Large holders are multiplying
That’s not all; the number of unique addresses holding more than 100,000 DCR has increased in the last 24 hours. This indicates an accumulation of larger participants.
Based on past observations, when large holders expand their positions during a breakout phase, it often reinforces the bullish outlook. The same scenario seems to be repeating itself for DCR.
Source: TradingView
Network activity signals reduced selling pressure
According to recent analysis from AMBCrypto, DCR transaction fees have stabilized over the past month. This suggests reduced transfer activity across the network.
Lower transfer activity may mean fewer tokens transferred to exchanges. This often reduces immediate sales pressure.
Combined with the high percentage of blocked supply, the decline in transfer activity strengthens long-term holder sentiments. Alignment is key to Decred’s projected rally.
Source: TradingView
What awaits the DCR?
DCR now has several bullish factors lined up.
Simply put, the token’s technicals are bullish with a 14% daily rise, a symmetrical triangle breakout, and the stochastic RSI just rebounding from the oversold zone.
Overall, long-term momentum indicators also signal a continuation of the uptrend. Addresses of large DCR holders are increasing and 72% of supply liquidity is currently blocked.
If sentiment remains positive, the recovery could accelerate. However, sustained volume expansion will be essential to confirm continuity.
Final Summary
- DCR jumps 14% after breaking out of a symmetrical triangle, while 72% of supply remains locked in.
- The stochastic rebound of the RSI and the rise in the addresses of large holders reinforce the prospects of continued bullishness.
