Fibonacci Analysis of Digitex Futures Exchange Token (DGTX)

During the past two weeks, the DGTX token has enjoyed a substantial rally, with a gain of 50.14%. This marks the largest two-week rally since October 2018. Where do we go from here? What’s in store for DGTX as the Digitex team prepares to launch the commission-free trading exchange on 30th April? Let’s review the numbers (courtesy of CoinMarketCap).

DGTX Price Performance

DGTX Price Performance

The table displays the DGTX trading activity for the past two weeks. As you can see, the native token has declined only three days since 18th February. The highest daily closing price occurred on 3rd March @ .0542. The lowest daily closing price occurred on 24th February @ .0342. Why has DGTX generated a rally of over 50% during the past two weeks? There are two possible reasons the token has enjoyed a bullish breakout to the upside. Let’s discuss the details.

Digitex Treasury Token Sales Began 1st March

In order to ensure the ongoing growth and success of the project, Digitex laid out a sustainable and transparent funding path ahead. The Digitex Treasury will fund the company’s ongoing development and expansion plans over the next two and a half years. These include spot trading, the addition of further futures markets, and roll out into extra countries worldwide.

With 10% of the total supply of DGTX (100 million) locked up into a smart contract, the Treasury releases 10 million every quarter for public sale until mid-2021. Around 1 million DGTX tokens have already been sold in just a few days!

With countless ICO companies going bust after the initial raise, this was a smart move on the part of Digitex. Not only does it allow all the community to see how many people are investing and when, but it also places a cap on the amount to deter crypto whales.

The Digitex Treasury may even stall the minting of any new tokens, which would delay the inflationary effect on token price for longer.

You will notice on the table above that the price of DGTX began to blast off to the upside as we approached the sale of treasury tokens on March 1st. Why did this rally occur? Why did DGTX exceed 5 cents per token for the first time since January 9th?

Likely because Digitex announced a minimum treasury sales price of 5 cents per token. In other words, investors who purchased DGTX through the public token sale, could not purchase the tokens for less than 5 cents.

The good news: As soon as the public token sale was launched, the price on the “open market” increased to 5 cents per DGTX. This is a very bullish sign because it means that the cryptocurrency market believes that the “fair value” for DGTX is at least 5 cents per token.

That doesn’t mean the price of DGTX will never again drop below 5 cents. However, it does mean that 5 cents per token is a “fair market price” based on the treasury token sale.

DGTX Forecast Based on Fibonacci Analysis

One of the most popular ways to examine the future direction of an investment vehicle is to calculate price levels based on the Fibonacci ratio. I provided Fibonacci numbers for the DGTX token in October 2018. Let’s review a new set of Fib numbers based on the recent price action of DGTX.

DGTX Fib

The above table displays the next eight price levels for DGTX. If DGTX can manage to trade above .0679, the token could be on its way to Level 8 @ .1199 rather quickly. Of course, it’s impossible to accurately predict the future price direction of any asset class. However, the Fibonacci ratio does provide a good starting point.

As we discussed in previous articles, .0679 is a very important number from a technical perspective. A weekly close above .0679 would signify the end of the mini-bear market in DGTX. It would encourage the momentum traders to re-enter the market, providing a springboard to higher prices.

All DGTX traders and investors should pay attention to .1606, which represents the all-time high from October 14th, 2018. A new all-time high is always very bullish for any speculative investment.

Personal Observations

April 30th, 2019 will be remembered as a “landmark day” in the history of the Digitex Futures exchange. It will also be viewed as a significant day in the history of commodity futures exchanges and crypto exchanges. It marks the first day that traders and investors can participate in a zero-fee exchange. How exciting!

The entire team at Digitex has worked incredibly hard during the past several months to bring a revolutionary futures exchange to the trading public. It’s not easy to disrupt an industry that has been using the same business model since 1848.

Most likely, other firms will eventually join Digitex by offering their own version of a commission-free exchange. However, Digitex will always be remembered as the first.

Full Disclosure: I own DGTX.

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

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