Trade Recommendation: DigixDAO
The DigixDAO/Bitcoin pair (DGD/BTC) came off lows of 0.005045 on September 12, 2018. At this price, the market was down by over 93% from the 2018 high of 0.081. This puts DGD/BTC on the list of the worst altcoin performers in 2018.
While it is tempting to write off DGD/BTC, the reality is that the market is now trading at a very affordable price. This is one of the reasons why we kept the pair on our watchlist. We wanted to see if someone will start accumulating positions. We got this signal on September 14 when volume spiked to over 516% of its daily average. Such a surge in volume is definitely not a blip.
Technical analysis shows that DGD/BTC is carving a bottom at 0.0054. This price area is the market’s historic support. Thus, we can expect bulls to fight tooth and nail to defend this territory. So far, they’ve been successful. The market has managed to stay above this support for a couple of weeks now.
In addition, we can see on the daily RSI that bulls are starting to gather momentum. The market generated a bullish divergence. As a result, DGB/BTC pierced immediate RSI resistance of 38 and turned it into support.
The strategy is to buy as close to 0.0054 support as possible. As long as the market is above this level, there’s a very good chance that it will rally our target of 0.0095.
The process may take a month.
Daily Chart of DigixDAO/Bitcoin on Binance
As of this writing, the DigixDAO/Bitcoin pair is trading at 0.005757 on Binance.
Summary of Strategy
Buy: As close to 0.0054 support as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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