DigiByte Meets Resistance After an Extraordinary 101% 30 Day Price Increase

DigiByte has experienced a small price decline totalling 4.71% over the past 24 hours of trading. The cryptocurrency is currently trading at a price of $0.0419 and has witnessed a further price drop totalling 10% over the past 7 trading days.

DGB is currently ranked at 33rd position in terms of overall market cap across the entire industry, with a total market cap value of $442 million. It has experienced a significant price surge of 101% over the past 30 trading days.

DigiByte was founded in January 2014, by Jared Tate and was intended to become a more secure, faster and forward thinking blockchain. Over the course of the 4 and a half years that DigiByte has been trading, it has witnessed an implementation of SegWit and can boast far superior transaction speeds relative to Bitcoin. At this moment in time Bitcoin can currently handle 7 transactions per second, Ethereum can handle around 25 transactions per second and DigiByte can boast a superior capability of processing over 500 transactions per second at this moment in time. THis is due to the 15 second block time that DigiByte possesses relative to Bitcoins 10 minute blocktime. The DGB team expect the transactions per second to hit 2000 by the year 2020 and up to 280,000 transactions per second by 2035.

DigiByte is also different to the majority of altcoins in the sense that it possesses 5 mining algorithms. This means that it is accessible to mining for most users with a big or small mining set up. This also aids to the security of the network and improves the distribution over time. The network currently has around 100,000 nodes and has received a co-ign from the polarising crypto figure, John McAfee, who included DGB in his “coin of the day” series back on the 22nd December 2017.

Let us continue to analyse price action for DGB over the long term.

Price Analysis

DGB/USD – LONG TERM – DAILY CHART

dgb price analysis 26 jul - 1

Analysing the market from the long term perspective above, we can see that price action had experienced a significant bullish run when the price started from a low of $0.0081 on the 11th of November 2018 and extended to an all time high of $0.1412 on the 5th of January 2018. This was an extraordinary price increase of 1900% from low to high.

After placing the all time high, price action went on to depreciate during January, initially finding support at the 100 day moving average. However, price action was unable to remain above this level and continued to fall further until it found support at the .886 Fibonacci Retracement level priced at $0.0232. This is a Fibonacci Retracement measured from the entire bullish run aforementioned above.

Price action went on to fall slightly below the .886 Fibonacci Retracement during March/April until it found support at a rising support trend line. This rising trend line has provided ample support over the course of the year.

For the majority of the trading year we can see that price action has been confined between the resistance line marked at $0.05 and the rising support trend line.

Let us continue to analyse price action a little closer over the more recent period to highlight any potential support and resistance zones.

DGB/USD – SHORT TERM – DAILY CHART

dgb price analysis 26 jul - 2

Analysing the market from a closer perspective we can see that during April 2018, price action had experienced another bullish run when the market started from a low of $0.01579 on the 1st of April 2018 and rose to a high of $0.0522 33 days later on the 3rd of May 2018. This was a price increase totalling 225% from low to high.

The market went on to fall during May 2018, initially finding support at the short term .618 Fibonacci Retracement priced at $0.029. This is a Fibonacci Retracement measured from the bullish run during April 2018. As June started to trade, the market slipped below the 100 day moving average causing price action to continue to fall until it found support at the .886 Fibonacci Retracement priced at $0.019. This area provided significant support and formed the basis for the 101% bullish run seen over the past 30 trading days. The area of support was significantly bolstered by the rising support trend line, adding to the expected support in this area.

The market went on to surge during July rising from $0.02 until it recently hit resistance at the $0.05 handle. If the bearish pressure begins to pick up steam once again, we expect near term support to be immediately located at the .382 Fibonacci Retracement priced at $0.038. This area of support also contains the long term .786 Fibonacci Retracement adding further to the expected support here. Support below this level can be located at the .5 Fibonacci Retracement priced at $0.033. It is important to highlight that the 100 day moving average is also hovering slightly above this level adding to the level of expected support here.

Alternatively, if the bulls can continue on their streak and push the market above the $0.05 handle, we expect near term resistance to be located at the 1.272 Fibonacci Extension level priced at $0.054. Resistance above this area is located at the 1.414 Fibonacci Extension priced at $0.059 and then the 1.618 Fibonacci Extension priced at $0.065.

The technical indicators within the market are relatively mixed. The RSI is currently trading just below the 50 handle, indicating that the bullish momentum previously seen could be fading. If the RSI breaks below the 50 handle we could expect the market to head lower to one of our support levels mentioned above. Alternatively, if we are to expect the bullish momentum to continue we would need to see the RSI make its way back above the 50 handle and continue to rise.

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