After slumping to 7-week lows, Darkcoin has bounced back by 20% in some of its most volatile trading since May.
Darkcoin (DRK) is currently trading at 0.0108 BTC, the equivalent of $7.10, on MintPal. Its total valuation is $31.8 million, ranking it 5th amongst all cryptocurrencies, 3rd amongst those mineable.
Darkcoin had been in decline since peaking near the equivalent of $16 at the beginning of June. It had experienced multifold gains within a month. A major correction was in order, the only question being if the coin will restabilize. From its peak, it fell as low as 0.009 BTC, the equivalent of $5.60. The loss of 65% transpired over a 7 week period. It was in danger of falling behind Dogecoin into 7th place in market cap until its recent bounce.
DRK experienced some massive price swings after hitting the $5.60 low. It shot up by over 12% in less than 5 hours, followed by a drop to near its previous low, followed again by its current rise. Such volatility is often characteristic of a critical point of reversal, where the transformation from seller to buyer-dominated activity produces storm winds of highly unstable price patterns.
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Darkcoin’s volatility contrasts with the flat activity observed with both Bitcoin and Litecoin. Additionally, it joins Ripple in being the only major coins to be trading higher over the past 24 hours, with Ripple also up by about 20%.
Darkcoin’s mid-term prognosis must still contend with the bubble-like effects from its rapid rise in May, and its falling through a key support level during its recent decline. The volatility observed with DRK is often the precursor to major declines, although if the asset in question is fundamentally strong, it can signal the start of a major reversal.
Fundamentally, the market’s enamorment with Darkcoin’s private transaction capabilities appears to have waned, at least for the time being. The question remains if it will be reinvigorated in spite of similar features now being offered by other coins. The community is also uncertain of the next move, although some members are perhaps trying to reveal incognito signals with posts like “Popular crypto currency media website will be publishing a very negetive article on Darkcoin“. In this sample, the member warns of dangerous trading to come.