In 'Extreme Fear' Crypto Market, Why Decred Soared 17% While Kyte Plunged 13%

▲ Decred (DCR)/Source: X

The cryptocurrency market has been gripped by “extreme fear,” losing a clear sense of direction, while returns among the top 100 coins by market capitalization have sharply diverged. Decred (DCR), which achieved a technical breakout backed by strong buying pressure, surged more than 17% to rank first in returns. In contrast, Kite (KITE), hit hard by deteriorating investor sentiment, plunged over 13%, recording the worst performance.

According to CoinMarketCap on Feb. 22, Kite was trading at $0.209, down 13.21% over the past 24 hours, significantly underperforming the broader market. Although there was no specific negative news, the overall Fear & Greed Index remained at 14 (Extreme Fear), triggering a large-scale capital outflow from high-risk altcoins. Bitcoin’s (BTC) dominance holding at 58.35% also weighed on prices, as rotational buying into altcoins failed to materialize.

Kite is now fighting to defend the $0.209 level, which serves as both its immediate key support and 24-hour low. With a substantial trading volume of $188.3 million adding to selling pressure, the risk of further declines remains high unless overall market sentiment recovers through a rebound in Bitcoin. Analysts say reclaiming the $0.235 resistance level is crucial to confirming a short-term easing of selling pressure.

Meanwhile, Decred defied the frozen market atmosphere, surging 17.84% from the previous day to $28.39. The rally was driven purely by technical buying and a spike in trading volume, without any specific news or macroeconomic catalysts. Decred’s 24-hour trading volume jumped 131% to $8.58 million, breaking decisively above its key resistance levels—the 7-day moving average ($23.64) and the 30-day moving average ($21.62)—demonstrating strong upward momentum.

There remains ample room for further gains. Decred’s 14-day Relative Strength Index (RSI) stands at 59.8, indicating it has not yet entered overbought territory and leaving room for additional buying pressure. Market observers note that if Decred firmly establishes its former resistance at $24.50 as new support, it is likely to attempt a breakout above the psychological resistance level of $30.

However, the lack of concrete fundamental catalysts to support the rally poses a potential risk. Experts caution that since Decred’s rise relies largely on technical momentum, failure to sustain strong buying volume above the 7-day average over the next 24 to 48 hours could trigger a wave of short-term profit-taking. Investors are advised to exercise caution.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted solely for informational purposes.