Decred (DCR) has taken a hit — tumbling about 16% this week — but the sell-off may not tell the whole story. While market sentiment has cooled and spot holders continue to trim positions, AMBCrypto’s analysis finds early technical and on-chain signals that could pave the way for a near‑term rebound. What’s driving the recent weakness - Investor mood has softened slightly: CoinMarketCap’s Community Sentiment metric fell from 74% to 71%, indicating a modest decline in bullish conviction among retail traders. - Net outflows persist on spot markets: CoinGlass data shows roughly $1 million of DCR sold recently, a sign that demand has been under pressure and that sellers have dominated short-term flows. Why a bounce is still possible - Falling volume suggests the selling may be losing steam: Trading volume dropped about 20%, to $6.7 million. A price decline accompanied by lower volume often indicates weakening bearish momentum rather than accelerating panic selling. - Price has reached a key demand area: The latest dip pushed DCR into a Fair Value Gap (FVG) — chart-identified zones of unfilled orders that can act as support. Price action inside that zone produced wicks, signaling buyers stepping in. - Liquidity and inflows remain supportive: The Money Flow Index (MFI) read 78 at press time, pointing to active capital entering the market and continued investor participation that could underpin a recovery. Technical outlook and targets - Short-term: If buying holds in the FVG demand zone, DCR could climb toward ~$27.98. - Medium-term: A sustained recovery might press prices up to around $29.80, aligning with the upper structure of recent key zones on the charts. - Momentum caveat: The MACD histogram has eased from deep green to lighter shades, reflecting recent downside pressure. A crossover of the signal line above the MACD line would confirm stronger bearish momentum; at the time of analysis, that bearish confirmation had not yet occurred. Bottom line Decred’s 16% pullback and ongoing outflows highlight genuine near-term challenges, but declining volume, buying wicks in a Fair Value Gap, and healthy MFI readings suggest the downtrend could be cooling. Traders watching DCR should monitor liquidity in the demand zone and any MACD crossover for clearer confirmation of direction. Note: This write-up summarizes AMBCrypto’s analysis and is for informational purposes only; it is not investment advice. Cryptocurrency trading carries high risk — do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news