Decred’s DCR token has literally lifted off today in a monumental surge from $26 to top out over $40. The massive move has added over 50% to DCR prices but it had begun to pull back from the pump at the time of writing.
A twitter-based self-confessed Decred bull took a look at some of the technical indicators driving the move a couple of days ago;
“Decred is breaking out again. Quick overview of some charts and potential short term targets. Now firmly above Realised price. This is a bull market folks. MVRV upper band with 20% probability of mean reversion is $34 and trending higher. Mayer multiple 5% prob is $42. Ye Olde Stock-Te-Flow model calls for around $44.”
Those targets have now been hit as DCR bounced off of $42 a couple of hours ago during early Asian trading on Thursday.
He added that the treasury has now expanded which means more developers can be added to the team;
#Decred treasury is now $24.5M.
It was $16.5M this morning.
Now the treasury has grown, we can hire more devs and build more value
This means more coins will come off the market to stake.
More coins off market means less to buy.
Supply demand reflexivity is about to kick in. pic.twitter.com/bzF4bZXqHo
— Checkmate 🔑⚡🎟 (@_Checkmatey_) December 3, 2020
Why Decred, Why Now?
Decred uses a hybrid proof-of-work and proof-of-stake consensus mechanism called proof-of-activity. It became the first crypto project to approve a protocol change through an on-chain vote in June 2017, and aims to be an alternative to the Chinese miner reliant Bitcoin.
Social sentiment appears to be driving this move which accelerated in a 2017-style pump once key resistance was broken.
Strong moves in Decred social + market activity have moved it up to the #1 AltRank™ on @LunarCRUSH.
44.1% price change
1,036 social mentions
2,650,530 social engagementshttps://t.co/OgXKKXXbNA $dcr #decred pic.twitter.com/tWQjJ9dCWL
— LunarCRUSH Social Listening for Cryptocurrencies (@LunarCRUSH) December 3, 2020
DCR has been in the doldrums for most of the year with a low of around $7 during the March crypto market crash. It is currently trading at its highest price since October 2018. Its all-time high came in the January 2018 crypto bubble when DRC hit $130 per coin.
Decred co-Founder and project lead Jake Yocom-Piatt featured on Nasdaq’s ‘TradeTalks’ on Wednesday, Dec. 2 which has also renewed investor interest in the project.
In October, Decred announced its first zero-fee decentralized exchange called DCRDEX.
Today’s Other Performers
Other crypto assets performing well over the past 24 hours include Elrond which has spiked 35%, Algorand which is up around 17%, and Aave which has made a similar gain over the past 24 hours.
DeFi tokens have been dominating markets over the past week, but Decred has blown them all out of the water with its epic pump today.
Total crypto market capitalization has moved up over 2% over the past 24 hours to reach $576 billion according to Coingecko. The move comes as Bitcoin returns above $19,000 and the market momentum resumes once again.