Analyzing Decred's situation after the sell-off – Will the price drop to $24 or rise to $35?

In the context of the cryptocurrency market facing severe pressure, Decred (DCR) has experienced a significant decline on its price chart. This altcoin has dropped up to 27%, from a five-month high of $37 to a low of $27—a clear sign of intense selling pressure.

At the time of writing, DCR is trading at $28.5, down 19.5% in just one day. This price drop marks a sharp reversal from the previous upward trend of the cryptocurrency. Before the plunge, DCR had a remarkable week with an 18% increase. However, escalating political tensions in the Middle East caused the entire crypto market to enter a downturn, leading to a sharp decline in DCR.

Trading activity also indicates that some Decred investors may have been forced to accept losses and are now worried about further depreciation in the future.

Increasing Selling Pressure Amid Panic Wave

News of a new conflict outbreak has pushed the market into panic, prompting investors to rush to sell off assets. Trading data shows that seller strength surged to 76, while buyer dominance dropped to 23—an indication that most market participants have accepted losses and closed their positions to avoid risks.

Source: Tradingview The selling volume increased to 867k, while buying volume dropped to just 943k—reflecting a clear rise in sell-offs. If market sentiment does not improve significantly, sellers may continue to dominate, surpassing buyer demand.

However, it is noteworthy that despite increasing selling pressure, buyers still maintain a certain presence in the market, indicating they still have confidence in Decred’s long-term potential.

Is the Bullish Structure Still Maintained?

Although DCR’s value is declining sharply, Decred’s market structure still retains an overall upward trend. Previously, Coinphoton reported that this altcoin was trading within an upward channel, and currently, this structure has not been broken.

Historical analysis suggests that upward channels often serve as a springboard for further growth, with investors taking advantage of dips to buy in. If this trend continues despite the current correction, Decred could see a strong rebound once external factors stabilize.

Additionally, the DMI trend indicator shows that DCR remains in a bullish state. At the same time, the coin remains above key technical indicators such as MACD and SMA, with support levels oscillating between $20 and $26.

Source: Tradingview With the upward momentum still intact, a positive shift in market sentiment could trigger a strong recovery, helping Decred recover recent losses and aim for the $35 target. However, if panic and instability persist, Decred’s price could fall to $24, with a critical support level at $20.