The drop occurred as almost a fourth of the sell orders of the wall at 3.5100 have moved to 3.4500. Namely, Dukascoin bears are giving in and agreeing to lower prices.
Daily Candle Chart
The most recent update to the technical chart is that the 100-day simple moving average reached the rate during the last week. As expected, it failed to impact the rate. Note that SMAs and pivot points are useful in a market that is trending in larger or smaller waves either up or down.
In the case of DUK+/EUR in 2021, there are no trends or directions, as price action is dictated by sudden inflows and outflows of sell or buy orders in an environment of low liquidity.
Market Depth
Market Depth reveals, where traders have set up buy and sell orders. The up to date data is published at dukascoin.com. Below, one can observe the market orders on March 22.
There are orders to buy at least 100 coins at each exchange rate level below the 3.3000 mark. At most levels it is exactly 100 coins. Due to that reason it can be assumed that a larger market player has set up his orders to buy up coins, as the price declines.
In regards to sell orders, the most close by sell order cluster is at 3.4500, where 3,367.80 coins might be sold. These orders are assumed to be a portion of the orders that previously made up the sell order wall at 3.5100.
Namely, on March 15, there were 14,349.74 coins to be sold at 3.5100. This week, there are 11,741.81 coins set to be sold at 3.5100.
However, if one combines the March 22 sell orders at 3.4500 and 3.5100, it can be observed that there are in total sell orders for 15,109.61 coins, which is more than during the previous week. The wall of sell orders has increased.
Note that this wall appeared in the aftermath of the changes in the low liquidity fee on February 25.
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In general, a surge above the 3.4500 level is highly unlikely due to the set up sell orders.
Meanwhile, dips downwards are possible, as they have occurred during the previous two weeks. The dips occurred as buyers came into the market and set up bid offers in the range from 3.3000 to 3.5100.
Afterwards, a portion of the sellers that have their orders at the wall, decide to take the bid. Due to this reason, the lower price level was booked at 3.4000 and afterwards 3.4500. However, as the bid orders ran out. Namely, all of the demand is satisfied, the DUK+/EUR exchange rate returned to trade flat.
This way, since March 8, the total amount of coins to be sold at 3.5100 and 3.4500 has decreased from more than 22,000.00 to the previously mentioned 15,000.00.
On the other hand, if the sellers that make up the wall hold, the rate would most likely remain flat.
Meanwhile, a highly unlikely scenario would be that a large participant or a group of participants enter the market and take the other side of the sell orders at the 3.5100 level.