In this update, we take a closer look at the recent price movements of DigiByte (DGB), which has shown significant volatility in recent months. Following several breakouts and pullbacks, DGB is now approaching a crucial resistance level. Let’s analyze these moves and see where the price could be headed.
Recent Breakouts and Short Rally
DigiByte has been exhibiting some exciting price action lately. After breaking out of a long-term falling wedge pattern, DGB managed to break out of another smaller falling wedge. This double breakout resulted in a short but significant rally. Using the measurement tool, the price pump from the low to the high was a substantial 220% increase. However, the price struggled to sustain momentum, hitting a strong resistance level at $0.0185. This resistance, which has historically served as both a support and resistance point, continues to hold strong.
New Down Channel Forming
After failing to break the $0.0185 resistance, DigiByte has formed a new down channel, which has been more visible on the daily time frame. Since March 1st, 2024, DGB's price has been moving within this downward channel, with several bounces and rejections along the way. Each bounce off the support and rejection from the resistance keeps the price trapped in this pattern.
Key Support and Resistance Zones
The price is now hovering near the resistance of this down channel, but it’s important to highlight a long-term support zone between 0.56 cents and 0.6 cents. This zone has been tested multiple times over the past several months. It first acted as support back in November 2022, and again in June 2023. The price is now testing this zone once more, showing how crucial this level is.
If this support breaks, DigiByte could retest the lower support level of the down channel, around 0.388 cents.
Potential Breakout and Targets
On the upside, if DGB can break out of this down channel, the first key resistance to watch is at 1 cent. This level has acted as a strong support and resistance multiple times in the past, making it an important hurdle for the bulls.
If the price successfully breaks above 1 cent, the technical target for the breakout from the down channel would be around 2.1 cents. Breaking this level could lead to an even more significant move, with the long-term resistance at $0.0185 potentially falling as well.
Long-term Outlook: Falling Wedge Target
Taking a broader view, the price action on the 7-day time frame shows that DigiByte has already broken out of a large falling wedge pattern. This breakout suggests a long-term target of 20 cents, which is the top of the wedge. While there’s still a long way to go, this remains a viable target if the current trend continues and more resistance levels are broken.
Conclusion
DigiByte is at a critical juncture, with price action indicating that a breakout from the current down channel could trigger a larger rally. Keep an eye on the key levels, especially the resistance at 1 cent and 1.85 cents, as well as the long-term target of 20 cents.
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