DigiByte (DGB) has surged sharply in the last 24 hours, appearing to stage a decisive bullish breakout. The coin has also recovered much of the losses seen earlier this year over the past month. But how sustainable is this momentum? Key points are summarized below:
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DGB climbed roughly 90% over the past 30 days and gained more than 100% over the past 14 days.
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The coin recorded an intraday gain of about 30% within a 24-hour period.
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Significant downside risk from a potential sell-off remains.
Data source: TradingView
DigiByte (DGB) — Analysis of the current uptrend
Throughout most of 2022, DigiByte traded in a generally downward trend with occasional short-lived rallies. Over the past 14 days, however, the coin has sharply reversed course, rallying nearly 90%. DGB is now testing the $0.40 level — a price last seen in June of last year.
The $0.40 level represents a key resistance zone. It is likely that traders will take profits around that price, making it improbable that DGB will break through decisively on the first attempt. On higher timeframes such as the three-day chart, technicals suggest the coin is vulnerable to a significant pullback.
While this decline may not occur within days, the expectation is for a firm rejection at $0.40 followed by a move down toward about $0.28. That would amount to a decline of more than 30% from current levels.
Is now a good time to buy DigiByte (DGB)?
The momentum DGB has built over the last two weeks is likely to slow soon. At the time of writing, the price sits near $0.36. Based on chart resistance and the probability of profit-taking at $0.40, buying at current levels carries notable risk and offers limited upside in the short term.
Instead, monitor price action around the $0.40 resistance. If DGB is rejected and falls roughly 30% toward $0.28, that decline would present a clearer buying opportunity with a more favorable risk-reward profile.