Will DigiByte’s Growing Popularity Lead to Soaring Prices? (Price Analysis for DGB: March 5)

These events may bode well for the price–if they can attract enough attention from investors and traders. However, Coveting is still a relatively obscure exchange while Vertbase does not appear to have a large following. It is still unknown whether or not the Blockchain Summit will have any effect on price.

Key Highlights for March 5

• The price of Digibyte (DGB) has been gradually increasing since Feb 7, 2019.
• It reached a top of $0.0126 on Feb 24 before a flash crass caused it rapid price drops. The flash crash affected the entire cryptoasset market.
• DGB is currently trading at $0.0114.
• Price is trading inside a symmetrical triangle.
• There is resistance at $0.012 and $0.0125.
• There is support at $0.01 and $0.009

Cassiopeia Services, official PR for @DigiByteCoin is pleased to announce @vertbase as key sponsor and partner at the first DigiByte Global Summit. https://t.co/7O7iAV3tZs pic.twitter.com/N9KmD4pcd0

— Cassiopeia Services (@Cassiopeia_ltd) March 4, 2019

The Beginning of The Upward Move

The price of DGB on Poloniex is analyzed on 2-hour intervals from Feb 7 to Mar 5.

The price of DGB made a bottom at $0.008 on Feb 7. It gradually increased, forming ascending lows in the process. The support line is traced by connecting the ascending lows. The number of times the line is touched and its validity have a positive correlation. The support line for DGB was validated five times. Initially, the price was increasing at a higher rate than projected by the line. On Mar 4–the date of the fifth validation–price reverted back to the mean.

Tracing The Resistance

The descending resistance line is created by inverting the method used for the ascending support line. We trace the descending highs created by the price.

After reaching the Feb 24 high of $0.0125, the price continuously generated descending highs. It is currently in the process of generating a 4th descending high.  The price seems to be decreasing at the same rate as predicted by the descending highs. The descending resistance line combined with the ascending support line creates a symmetrical triangle, which is projected to end in approximately three to four days.

A Look at The Moving Averages

The Moving Average Convergence Divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to gauge the strength of a move. MACD is positive when the short-term average is above the long-term one and negative when the long-term average is above the short-term average.

Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs. In the case of DGB, a buy signal would have been triggered on Feb 17, when it priced at $0.0918. Using the same technique, a sell signal would have been triggered on Mar 4, when DGB was trading at $0.011.

The End of The Symmetrical Triangle

Resistance and support areas are found when the price reaches a certain level several times. Resistance acts as a floor while support acts as the ceiling. Together they build a structure which is supposed to limit the scope of price movements.

In the image above, the areas outlined can be used as predictors of likely areas of reversal. In the case of a breakdown, the price would likely face resistance at $0.012 and $0.0125 and support at $0.01 and $0.009. Given the above information, DGB may trade inside the triangle for the next four days, before breaking down and heading to the support area. Do you think DGB will trade outside of the triangle after the next four days? Let us know what you think in the comments below! While you’re at it, check out our honest Bitcoin (BTC) price prediction!  Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.