DigiByte (DGB): Buyers Are Protecting the Uptrend

September 28, 2020   DigiByte

DigiByte (DGB) displayed great resilience amid the recent bearish attack on the cryptocurrency market that substantially damaged most markets and spurred the talks about the end of the altseason that commenced with the rise of the DeFi sector.

The bulls are feeling confident in this market 

The coin that fuels the three-layer blockchain system for smart contracts and decentralized applications has had a splendid year as it gained 252% against USD, 239% in the Bitcoin market, and 121% in the pair with Ethereum. Last month has also been very productive for DGB since buyers managed to hold the uptrend structure together and keep the price flow above the 200-period EMA despite the large dip taken to $0.02 in the first week of September, where the price had consolidated for a few days before initiating an explosive recovery, gaining 54% against USD in four days.

At the moment, DigiByte is priced at $0.027 on the back of the 7% drop in the last 24 hours, during which the price tested the support at $0.024 that coincides with the 50-period EMA. Despite making a swift recovery, DigiByte still hasn't confirmed the intention to maintain the uptrend, although it is arguably the most promising coin in that regard.

The confirmation, of course, will come in the form of a new higher high above $0.037 that would be hard to achieve, considering the fact that the fall has become a season of depression for crypto in the past couple of years.

1-day DGB/USDT chart

The daily chart reveals how obedient DigiByte is to Fibonacci extensions, having found support at the 0.5 level and encountered rejection at 0.786. The obvious assumption here is that in case DigiByte breaks to the upside upon finalizing the ongoing retracement, it would conquer the prior higher high. We believe that DGB will have another bullish impulse during the coming week based on the showing of MACD, which confirms the strength of bullish momentum.

However, there is an increased possibility of the main signal line getting rejected at the zero line in present circumstances, leading to the bearish crossover. Therefore, please exercise extreme caution when entering a trade at this junction, or withhold from entering this market altogether before it becomes clearer how the price is going to interact with the 0.786 Fibonacci level because the size of the bearish spinning top candle tells us about significant indecision in this market at the moment.

Besides that, DigiByte has to stay above the 50 EMA to improve the confidence of retail traders in this altcoin and its commitment to the bullish agenda. There are three crucial price levels you need to watch in order to develop a proper trading strategy for the coming month.

  • $0.025 - the current support that converges with the 50 EMA and the 0.618 Fibonacci extension level. Its fortitude should be enough to keep the price from falling lower;
  • $0.032 - the ongoing resistance that should be easily broken to the upside if MACD wouldn't get rejected at the zero line, which would open up the way to a new higher high, presumably at $0.04;       
  • $0.019 - the level to which the price would fall if the sellers apply an insurmountable pressure - it coincides with the 200 EMA. A drop to that level would mean the uptrend is compromised, and DigiByte could go into a correction mode.
Author: Alex Paulson for Crypto-Rating.com

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