However, various signs indicated that the decline of the Dukascoin is unlikely going to continue.
Daily Candle Chart
On the daily candle chart, the rate has left above it the 55 and 100-day simple moving averages, which at the start of the week were located near the 1.7500 mark. This fact signals that the rate is oversold in the short term.
Meanwhile, the 200-day SMA was reached on Thursday, April 2. This indicates two things. Firstly, the pair is no longer long term overbought. Secondly, the simple moving average can provide technical resistance and in the short term keep the rate from surging.
Market Depth
By looking at the market depth data visualized on the chart above, one can immediately spot that there are a lot more buy orders than sell orders. It clearly is a sign that the pair is not going to decline below the clusters of buy orders.
Namely, there are three large buy order clusters. There are orders to buy 2704.94 Dukascoin at 1.2500. Meanwhile, 3000 coins could be bought up at 1.1100. These two levels are dwarfed by 50110 DUK+ buy orders at 1.0000.
However, sell orders, compared to buy orders, are almost non-existent. There are orders to buy 300 coins at 1.4000, 327.28 coins at 1.5000 and 500 DUK+ at 1.6000.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In the near term future, the rate was expected to trade sideways. Afterwards, a surge is most likely due to the large amount of buy orders located below the rate.
Namely, as the rate cannot decline due to buy orders close by and buyers observing the rate trading sideways, some of them, in theory, should move buy orders higher. This would be the cause of the breaking of the 200-day SMAs resistance at 1.4000. Afterwards, the 1.6000 sell order cluster should be reached.
However, take into account that due to fundamental changes occurring in the global markets potential buyers could cancel their buy orders in favour of other safe assets.