Cryptocurrency
by Seth Parker on August 13, 2018

DigixDAO Analysis – Dead cat bounce

Second piece of the day is about the DigixDAO, which was previously analysed on the 11th of June. We were strongly bearish and we were waiting for a bigger drop. In our last piece, we said that it was almost certain:

“It is hard to tell where is the target for this drop but one thing is more or less certain. The further decline is not the matter of ‘if’ but ‘how deep’ „

Digix chart

Back in that day, the price was around 118 USD. Now, we are on the 60 USD. As you can see, that was a great call. Today, DGD got our attention because this coin is one of the biggest gainers among the biggest cryptos. Does this upswing change anything? Not really, the sentiment is very bad here and this upswing can be only considered as a dead cat bounce or a catching of a falling knife type of thing.

The middle of the European session brings us a bearish counter attack, which is perfectly in line with the longer trend. After two months, our outlook stays the same – we should see a further drop and again, it is not matter of if but how deep.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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