Exclusive DigiByte (DGB) Bounces Back Toward Local Highs

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In Brief
  • DGB/USD has bounced at the $0.05 support area.

  • Technical indicators suggest an increase for both DGB/USD and DGB/BTC

  • DGB/BTC has bounced at the 113 satoshi support area.

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The DigiByte (DGB) price decreased significantly on Feb. 14, but managed to bounce back, validating the $0.05 support area in the process.

Technical indicators, the wave count, and the price action for DigiByte support the continuation of the upward move toward $0.084.

 

DigiByte Long-Term Levels

The weekly chart shows that DGB has been increasing rapidly since the beginning of February. At the time of press, it was trading at $0.069.

The closest resistance area is found at $0.088 (0.618 Fib retracement level measuring the all-time high price of $0.14). The all-time high price could act as the next closest resistance area.

DGB Weekly
DGB Chart By TradingView

A closer look reveals that DGB has bounced at the $0.050 support area, which previously acted as resistance from April 2018. As long as DGB is trading above this level, it’s expected to continue increasing toward the next resistance area at $0.088. It could potentially move straight back up to the all-time high level at $0.14.

Technical indicators are also bullish, as evidenced by the bullish cross in the Stochastic oscillator and the RSI cross above 70.

DGB Weekly Indicators
DGB Chart By TradingView

Future Movement

The daily chart further supports the continuation of the upward movement.

Besides the massive bullish candlestick with a long lower wick, the RSI has also generated a hidden bullish divergence. This is commonly a strong sign of a trend reversal.

Therefore, DGB is expected to continue moving higher toward the previously outlined resistance areas.

DGB Daily Movement
DGB Chart By TradingView

Wave Count

The wave count suggests that DGB is in an extended wave three (white) of a bullish impulse that began in March 2020. Wave three has extended and the sub-wave count is shown in orange.

The most likely target for the top of the upward move is found at $0.085. This target was found using a Fib projection of waves 1-3. This level also coincides with the long-term resistance area at $0.088.

The next most likely area for a top is found between $0.106-$0.109.

DGB Wave Count
DGB Chart By TradingView

DGB/BTC

Cryptocurrency trader @JohnathanKNT outlined a DGB chart, stating that the DGB/BTC looks ready to blow up.

DGB/BTC Movement
Source: Twitter

The chart for DGB/BTC shows a bounce at the 113 satoshi area, which previously acted as a resistance. This confirms the level as support.

Furthermore, both the MACD and Stochastic oscillator are increasing. The RSI has even generated a hidden bullish divergence, similar to the DGB/USD pair.

Therefore, DGB/BTC is expected to increase toward the closest resistance areas of 168 and 192 satoshis.

DG/BTC Movement
DGB Chart By TradingView

Conclusion

As long as it DGB trading above the $0.050 support, it’s expected to continue increasing towards the next closest resistance area near $0.088.

DGB/BTC is expected to increase toward the 168 or 192 satoshi levels.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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