Deep Dive
1. Overbought Technicals (Bearish Impact)
Overview: DIGAU’s 14-day Relative Strength Index (RSI) reached 78.94 on 24 September, crossing the 70 threshold that typically signals overbought conditions. This followed a 12.99% price gain over 90 days.
What this means: Elevated RSI often triggers profit-taking as traders interpret stretched valuations. The narrowing MACD histogram (+0.003 vs +0.012 a week ago) confirms fading upward momentum.
What to look out for: A sustained RSI14 below 70 could stabilize prices, while a drop below the 7-day SMA ($6.08) may signal deeper correction.
2. Low Liquidity Risks (Mixed Impact)
Overview: DIGAU’s 24-hour turnover ratio (volume/market cap) is 0.045%, far below the crypto median of ~2-5%, with just $3.64M traded.
What this means: Thin order books magnify price swings—modest sell orders disproportionately impact prices. The self-reported circulating supply (1.3B DIGAU) lacks third-party verification, adding uncertainty.
What to look out for: Volume spikes above $5M/day could indicate renewed institutional interest or supply shocks.
3. Market-Wide Caution (Bearish Impact)
Overview: The crypto Fear & Greed Index dipped to 39 (“Fear”) on 24 September, reflecting risk-off sentiment as Bitcoin dominance rose to 57.81%.
What this means: Investors rotated toward large caps during uncertainty, pressuring mid-cap assets like DIGAU. Altcoin season index readings (73/100) suggest selective alt demand but not broad risk-taking.
Conclusion
DIGAU’s dip reflects cooling momentum after a strong quarter, exacerbated by fragile liquidity and sector-wide defensiveness. Key watch: Can DIGAU hold its 30-day SMA ($5.9) to maintain its 2025 uptrend, or will profit-taking deepen?