My analysis makes several assumptions. It assumes that BTC hasn't finished its correction. Therefore, if BTC falls to $4k - $5k range, I expect DGB to follow suit down to red support line. I also assume that DGB completed its 5th wave around 15 cents. The second orange wave is extended and the 3rd wave is a violent wave. Further, the 4th wave does not bleed into the 1st. In the 1st purple wave, I assume that the price cannot breach the blue line of resistance. My 2nd purple wave is long and drawn out but not nearly as long as the 2nd orange wave. I am ambitious to think that the 3rd purple wave breaks blue resistance only to meet another blue line of resistance (previous support). My 3rd purple wave takes us to a dollar!
My purple wave 4 retraces back to blue support line (previous resistance) and is higher than wave 1 (a requirement). The 5th purple wave will cause haters to shake their heads in disbelief and regret if it fulfills itself. The 5th purple wave takes us to $5. Of course, an correction follows the 5th purple wave back to blue support.
The last set of waves is where things get interesting and highly speculative with respect to the price. The first wave takes us to around $12! I think that price is realistic. Here's why. The DGB to BTC ratio is 1,000:1. Therefore, at any given point in time, in theory, we could be 1,000th the price of BTC . BTC has already reached $20k so it wouldn't be unreasonable for DGB to obtain a $20 valuation.
The price gets slaughtered on brown wave 2. Brown wave 2 does not last nearly as long as other wave 2's but does correct to the intersection of green and blue supports. As a side note, I don't think that my corrections are unrealistic because it is common place for the price to get slaughtered at peaks. This has been DGB's modus operandi since day 1. There are great opportunities to increase position in DGB by selling at these peaks and reentering on the dips. It is unrealistic to think that the price will go straight up. Most of us know this already but it is worth mentioning for those that are new to this game.
Brown wave 3 takes us to $30 if target reached. This is possible, if an only if, BTC obtains a valuation of at least $30k (which seems very realistic). Brown wave 4 corrects back to brown wave 1 without bleeding into it. Brown wave 5 is massive since it takes the price to about $60. Again, this price is only obtainable if BTC reaches at least $60k by then. Lastly, what follows is another correction back to the green support before we begin another rally.
It is important to note that supply need not imply value. Meaning, it does not follow that DGB will reach 1,000th the price of BTC just because of the supply ratio. For example, the value of DGB today is not 1,000th the price of BTC . But, it is possible for DGB to reach that price ratio if and only if the DGB development team and global community builds that kind of value into the DGB blockchain. Mass adoption and a great multitude of decentralized apps built on the DGB blockchain is a prerequisite for these type of prices.
Finally, don't spend all day staring at charts (like me!). Go out and have a good time with family and friends. And, if you make it big with DGB , don't forget to spread the wealth to others to maximize happiness
I am excited. Second trader revealed great road for DGB. Let's do it !