DigixDAO Analysis – That is a sell

Third piece on Monday will be written about the DigixDAO. It will be the first time that this altcoin will be discussed here but definitely not the last one as the technical situation is very interesting and in the next few weeks, we will have to check if our current prediction worked out or not. Currently, our view on this coin is bearish. DGD dropped like a rock yesterday and today is one of the biggest loosers in the top 50.

Technically, we are under the influence of the big bearish head and shoulders formation (yellow rectangles) that sets the negative sentiment for the next few months. Most recently, the price bounced from two super important resistances. First one was the horizontal neckline of the Head and Shoulders formation (black) and the second one was the mid—term down trendline (red). Inability to break those two resistance is a terrible sign for the buyers and leaves no hopes for this crypto.

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’