Things have not been good for Digibyte in the past week. It dropped from 30th on market cap to 39th before climbing back one spot. It has since stabilized at this level. But after this week’s drop, it seems to be on a recovery path. Today, it is one of the few major cryptos in the green. It is up by over a percentage, in a day when most of the main coins are either in losses or have made negligible gains. This is an indicator that after a series of losses, buyers are slowly streaming back to Digibyte (DGB).
What caused the sharp drop?
The selloff that saw Digibyte (DGB) drop a few notches on market cap was mainly caused by external factors. No negative news have come out with regards to Digibyte (DGB) in the past week. However, it hasn’t had any good news either. This and the fact that the market has been weak for the past one week, has caused most cryptos to lose value, and Digibyte (DGB) hasn’t been an exception. The only cryptos that have experienced some positive momentum in the past week are those with some good news around them.
However, from a look at the charts, it is clear that Digibyte has stabilized, and could be headed for a breakout. That’s because it has been trading in a tight range for the past one week, and the price drops have been getting weaker by the day. This is an indicator that sellers are drying up in the market, after a series of price drops that pushed Digibyte to a long-term support level at 330 satoshis.
This presents an opportunity for bulls, as can be seen by today’s price action, where Digibyte has been slightly bullish.
While today’s price action is just short-term price action, driven mainly by speculation and the daily tussles of bulls and bears, Digibyte’s long-term prospects look good. It has a use case in some of the most important aspects of the digital age. One of Digibyte’s biggest use cases is in cyber security. Digibyte’s core features make it quite useful in cybersecurity since it is impenetrable. The need for Digibyte as a cybersecurity tool gets revealed with each passing day. For instance, Facebook was recently compromised and millions of user information stolen.
While that’s the most outstanding case, since it was targeted at a major tech company, many other cases are emerging. Yesterday British Airways revealed that it had been attacked, at a wider scale than it thought. These attacks are slowly revealing to the world that centralized security systems are worthless, as hackers get more sophisticated. This is a factor that could drive up demand for Digibyte (DGB) in the future. Such a strong use case makes every day price movements irrelevant for Digibyte.
It is a long-term investment whose true value will get revealed with time, as it gets adopted by the market for its capabilities. Cybersecurity is one strength that could push DGB to over $1 in the future.