ForexMinute.com – The Darkcoin firecracker is gradually becoming a dud. This is the second time within 30 days when Darkcoin prices have slumped. If last fall was due to a wrongly conducted hardfork, this time we believe the fall to be enticed by a possible classic bubble.
What is Classic Bubble?
A classic bubble is usually occurring phenomenon in cryptocurrency market where a considerably hype for the coin is generated using different communication mediums such as huge sell off, media coverage, startups, etc. The hype lives up to a certain peak, after which the key investors start selling their coins in exchange of other coins of fiat currencies, leading to few hiccups and eventually a fall.
Classic Bubble in Context of Darkcoin
Given below is the 30-day chart of DRK/USD, indicating the aforementioned falls with a similar pattern. Focusing on the current dip, you can see how the BTC/USD pair started recovering from the low of $6.379 and trended upward, rallying to the peak value of $15.653 – surging almost double. This is where the Darkcoin market was surrounded with optimism led by the successful recovery from the accidental hardfork, and few other positive announcements. According to reliable reports, one investor even bought $5 million Darkcoin during this surge.
But looking at the fall side, we can see that the coin surged quite violently within a short span, thus reaching the top of the bubble too soon. The little jerk followed thereafter was a bull trap that might have led to panic sale. What we now see is the falling phase where early investors are simply shorting Darkcoin with other cryptocurrencies, probably Bitcoin.
As per the patterns noted from most of the classic bubbles of Bitcoin and Litecoin, we can assume that Darkcoin is likely to fall further in forthcoming days. Although after few weeks, the coin can rise again this time in a less volatile way.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org
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