DGB Cup & Handle Formation
Updated
DigiByte appears to be in the latter stages of forming a large Cup & Handle pattern. Shout out to alanmasters for his breakout call on DGB on April 11. I completely agree with his post (which I’ve linked below). You will not want to miss the earnings potential on this one. It has been and is severely undervalued IMO. It’s price has struggled since its inception with extreme volatility and beatdowns, and it’s not for a lack of fundamentals. Digibyte is an OG crypto. It is the longest and fastest UTXO blockchain in the world.
DGB has had a rough life. It’s been tossed around and has struggled for recognition, which puzzles me for as strong as it is fundamentally. It’s just gotten the wrong end of the stick. In June 2017, the DGB team went the infamous route of “announcing an announcement” to its price’s demise. Everyone knows announcing the announcement brings in the greedy, get-rich-quick-ers to buy the rumor and dump the news. You can go back in the chart and see the enormous pump & dump, after which DGB went into a long state of depression before bottoming out and taking a massive 5x leap in Dec 2017. Then in Jan 2017, the notorious John McAfee shilled the poor coin after an organic 5x and pumped it until it couldn’t breathe. Of course, like all pump & dumps, DGB fell sharply back to its levels pre-Mcafee shill just a week later. Then the BTC bear market struck as we watched DGB fall nearly 90% USD value from a high of 883 sats (15 cents) in Jan to a low of 226 sats (1.5 cents) in mid-March. Man, this thing has been abused!
But 2018 is the year that DGB’s luck changes.
We found a new higher support during the BTC bear market for DGB of 228 sats, up from the previous sell-the-news bottom of 83 sats, and DGB has been one of the first movers in this recent alt surge. This indicates to me a growing support base for DGB, and a solid community can be everything in the crypto world.
As you can see in the chart, DGB broke thru its 3 month-long log resistance level (red line) on March 21, consolidated and broke thru horizontal resistance of around 290 sats on April 11. From there, it has shot up 30% in the last 72 hours, finding resistance at around 370 sats.
DGB could be in the latter stages of forming a large Cup & Handle pattern. Here’s why I am bullish on a completion of the formation I have marked and mid-term target of 700 sats:
\u20281) DGB has already formed a smaller cup shape at the 370 sat level from its rounded bottom and recent uptrend. It appears we may already be in the midst of a smaller C&H before the big one. It’s possible we may form multiple C&H’s on the way up to the big one’s resistance at 465 sats.
2) There is a huge horizontal support turned resistance at the 465 sat level (marked with the red circles). DGB shouldn’t have any strong resistance until then as it continues its uptrend. When it reaches the 465 level, we should see a rejection and retrace, most likely to around the 420 sat level, where there seems to be healthy temporary support, judging by the 3 support touches in early Feb. If DGB reaches 465, I expect it to be bullish enough not to retrace to a lower level such as the 374 sats.
3) DGB seems to be gaining traction with the community and building a more solid community base, as seen by the recent first-mover surge. Its longevity speaks volumes of the developer support behind it, and the speed of the blockchain presents good potential for adoption use.
4) It’s had bad luck and its luck is bound to change. Just like the Dark Horse, naysayers fuel its inevitable and untamable rally.
I don't expect DGB to have any significant pullback on the way up, as it is in the midst of a bullish rally. If you are going to buy, I would look to accumulate on the pullbacks at the gray lines and ride it out to the target at the top of the handle at 700 sats.
Disclaimer: This is not financial advice
Please give me a like and a follow, as you guys are my fuel for posting my ideas.
The Dark Horse
DGB has had a rough life. It’s been tossed around and has struggled for recognition, which puzzles me for as strong as it is fundamentally. It’s just gotten the wrong end of the stick. In June 2017, the DGB team went the infamous route of “announcing an announcement” to its price’s demise. Everyone knows announcing the announcement brings in the greedy, get-rich-quick-ers to buy the rumor and dump the news. You can go back in the chart and see the enormous pump & dump, after which DGB went into a long state of depression before bottoming out and taking a massive 5x leap in Dec 2017. Then in Jan 2017, the notorious John McAfee shilled the poor coin after an organic 5x and pumped it until it couldn’t breathe. Of course, like all pump & dumps, DGB fell sharply back to its levels pre-Mcafee shill just a week later. Then the BTC bear market struck as we watched DGB fall nearly 90% USD value from a high of 883 sats (15 cents) in Jan to a low of 226 sats (1.5 cents) in mid-March. Man, this thing has been abused!
But 2018 is the year that DGB’s luck changes.
We found a new higher support during the BTC bear market for DGB of 228 sats, up from the previous sell-the-news bottom of 83 sats, and DGB has been one of the first movers in this recent alt surge. This indicates to me a growing support base for DGB, and a solid community can be everything in the crypto world.
As you can see in the chart, DGB broke thru its 3 month-long log resistance level (red line) on March 21, consolidated and broke thru horizontal resistance of around 290 sats on April 11. From there, it has shot up 30% in the last 72 hours, finding resistance at around 370 sats.
DGB could be in the latter stages of forming a large Cup & Handle pattern. Here’s why I am bullish on a completion of the formation I have marked and mid-term target of 700 sats:
\u20281) DGB has already formed a smaller cup shape at the 370 sat level from its rounded bottom and recent uptrend. It appears we may already be in the midst of a smaller C&H before the big one. It’s possible we may form multiple C&H’s on the way up to the big one’s resistance at 465 sats.
2) There is a huge horizontal support turned resistance at the 465 sat level (marked with the red circles). DGB shouldn’t have any strong resistance until then as it continues its uptrend. When it reaches the 465 level, we should see a rejection and retrace, most likely to around the 420 sat level, where there seems to be healthy temporary support, judging by the 3 support touches in early Feb. If DGB reaches 465, I expect it to be bullish enough not to retrace to a lower level such as the 374 sats.
3) DGB seems to be gaining traction with the community and building a more solid community base, as seen by the recent first-mover surge. Its longevity speaks volumes of the developer support behind it, and the speed of the blockchain presents good potential for adoption use.
4) It’s had bad luck and its luck is bound to change. Just like the Dark Horse, naysayers fuel its inevitable and untamable rally.
I don't expect DGB to have any significant pullback on the way up, as it is in the midst of a bullish rally. If you are going to buy, I would look to accumulate on the pullbacks at the gray lines and ride it out to the target at the top of the handle at 700 sats.
Disclaimer: This is not financial advice
Please give me a like and a follow, as you guys are my fuel for posting my ideas.
The Dark Horse
Note
Wow, Digi is looking great! Currently up 44% from alanmasters' call at 290 sats and up 13% from my postAs you can see, it is following the shape of the cup pretty nicely and currently finding resistance at 420 sats after another overnight surge. If you take a look at RSI, it is reading heavily overbought on the 4 hour chart, so it may need to cool off here for a bit, but there is a bullish MACD cross and steady increase in the On Balance Volume which is bullish for our ultimate target of 700 sats.
Once DGB gains enough steam to push thru the 420 level, it should serve as good solid support for a retrace at the heavy horizontal resistance of 465 to form a perfect handle for our extremely bullish pattern. Let's watch this closely over the coming weeks!
Note
Disclaimer
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