Darkcoin Price Technical Analysis for 20/03/2015 – Charging Bulls!
The longer-term uptrend on darkcoin price looks set to resume, as the cryptocurrency has broken out of its consolidation pattern against the bitcoin. Looking at the daily chart of DRK/BTC from Cryptsy reveals an upside break from the descending triangle formation, confirming the uptrend continuation.
- Two green candles have closed above the descending triangle resistance and may show upward momentum until the previous highs at 0.0161 and beyond.
- Moving averages are indicating an upward crossover, which could add confirmation to the upside breakout and potential long-term rally.
- RSI is moving higher, which confirms the presence of buying pressure. The indicator has just climbed out of the oversold area and is reflected an increase in momentum.
- Volume is also picking up, reflecting increased buying interest as the pair is showing direction.
The next resistance area is located at the 0.0130 area and may trigger a pullback to the broken triangle resistance. An upside break past the 0.0130 level might lead to a long-term climb back up to the previous month highs at 0.0161.
On the other hand, if selling pressure resumes, darkcoin price could head back to the longer-term support at 0.0100. A downside break below the long-term darkcoin price support at 0.0100 could mean that a reversal from the uptrend is taking place.
The path of least resistance is to the upside, as the previous trend has been very strong in moving higher. Triangle chart patterns generally serve as continuation signals, especially since an upside break took place. Further gains past the 0.0161 previous highs could mean a move towards the next potential resistance at the 0.0180 handle.
Conclusion
Darkcoin price has gained further ground against the bitcoin and may continue to do so, as price broke above the resistance of a long-term descending triangle pattern on its daily time frame. Technical indicators confirm sustained upside momentum, although small pullbacks might be likely before the longer-term climb resumes.