Exclusive DigiByte (DGB) Slowly Recovers, Targets $0.11 Retracement Level

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In Brief
  • DigiByte has retested the long-term $0.05 support area.

  • It has broken out from a short-term descending resistance line.

  • DGB/BTC is trading in a range between 110 and 179 satoshis.

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Digibyte (DGB) has been decreasing since Feb. 20 but has validated a long-term level at $0.05 as support.

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DigiByte is expected to increase toward higher resistance levels after stabilizing.

DigiByte Long-Term Retest

DGB has been decreasing since reaching a high of $0.091 on Feb. 20. 

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The drop has taken DGB back to the $0.05 area. This level previously acted as resistance but has now been potentially validated as support. 

Technical indicators are bullish, as evidenced by the bullish cross in the Stochastic oscillator and the increasing MACD and RSI.

DGB Chart By TradingView

Current Movement

The daily chart shows that DGB has also bounced at the 0.5 Fib retracement of the most recent upward move. The wick lows in this candle even reached the 0.618 Fib level. 

Technical indicators in the daily time-frame are at a crucial level in determining whether the trend is bullish or bearish. The RSI is at the 50-line and the Stochastic oscillator is close to making a bearish cross. 

A bounce at the current support area would likely cause both the RSI and Stoch to reject bearish trends to move upwards instead.

DGB Chart By TradingView

The two-hour chart shows that despite breaking out from a descending resistance line, DGB has yet to move above the $0.064 resistance area. However, technical indicators are bullish.

Reclaiming the minor $0.064 resistance area would likely confirm that the trend is bullish, at least in the short-term.

DGB Chart By TradingView

Wave Count

The wave count suggests that DGB is in sub-wave five (orange) of a long-term wave three (white) that began in December 2020. 

The most likely target for the top of this movement is located between $0.109-$0.117. This range is found by using the 2.61 length of wave one (white), the projection of the lengths of sub-waves 1-3 (orange), and an external retracement on sub-wave four (black).

A decrease below the sub-wave one high at $0.03 would invalidate this particular wave count.

DGB Chart By TradingView

DGB/BTC

Cryptocurrency trader @Incomesharks outlined a DGB/BTC chart, stating that the trend looks bullish and expects DBG to move higher.

Source: Twitter

Since the tweet, DGB has been hovering around the 1,100 satoshi area, which previously acted as resistance. While the bounce has been weak, DGB has moved slightly upwards. 

Technical indicators are neutral/bearish, so it is possible that DGB will consolidate between the 1,100 and 1,900 satoshi levels. 

At the time of press, we cannot determine the direction of the longer-term trend.

DGB Chart By TradingView

Conclusion

As long as DGB/USD is trading above $0.05, it is expected to continue increasing towards $0.11. DGB/BTC is consolidating in a range between 1,100 and 1,900 satoshis.

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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