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What is Fuelling the Rally in DigiByte Cryptocurrency?

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The DigiByte ecosystem is built with an emphasis on speed and security, which are often identified as limitations on different blockchains. DGB uses a proof of work algorithm to validate and complete a transaction.

With a strong price action witnessed on DGB, we can expect it to reach 10 cents valuations shortly. The current DGB price is facing some resistance from its 100 DMA that has coincided with the wicks on daily chart candles.

DigiByte Price Analysis

DigiByte Price Analysis
One day chart with Support Levels, Resistance, Moving Average, and MACD indicator

DigiByte has an active support range at $0.0500 levels on the immediate downside and resistance at $0.0791 levels. In order to remain in trend there needs to be some profit booking or consolidation, straight-line upside momentum often carries the risk of sudden profit booking induced by some new development.

DGB is for now trading in a bullish zone with immense buying interest. The MACD indicator shows chances of the rally to continue without consolidating but, DGB should halt its rate of progression in between to continue with the upside movement. Its 100 DMA comes out at around $0.06252 levels.

DigiByte price prediction
One hour chart with Support Levels, Bollinger, and MACD indicator

DGB shows an immense increase in volumes over the last few hours indicating increased participation from buyers and sellers of this cryptocurrency. As MACD is nose-diving towards the red zone we expect some retracement from current levels and a second attempt at breaking the recent high created at $0.066 levels based on our DigiByte forecast.

Support on hourly charts comes out to be at $0.0579 with Bollinger Bands hitting newfound volatility. The widening of Bollinger bands indicates scope for higher volatility and continuation of the upside movement. For now, DGB seems to have taken support from the lower end of the mean average line and faces some turbulence at the mean average line indicated by red.

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TRON Negates the Fall in Valuation with Strong Buying!

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TRON has climbed huge mountains after its release in 2017 and has posted over 17650% of gains from its launch value in 2017 to September 2021. The value of TRX has undergone a huge change from $0.0022 levels to the current value of $0.9265 levels. TRON currently ranks amongst the top 30 cryptocurrencies with a market capitalization of over $6 billion with a circulating supply of 71 billion coins.

The value of Tron is straight forward a derivative of its exposed circulating supply and its potential. Comparing the numbers, TRON can process 2000 transactions per second compared to just six transactions per second of Bitcoin and 25 of Ethereum. Just comparing the numbers gives the transactional capability of TRX and its upscaling potential.

TRON has mostly focused on content creators and has used TRX coin as a way of rewarding content creators through its rewards. It even allows creators to develop their tokens and decentralize the gaming sector. Positioning itself as a content creator supporting ecosystem has enabled creators to connect directly with potential customers, eliminating centralized platforms. Considering the upscaling potential of Tron, people interested in investing here should hold their positions.

TRON Price Analysis

TRON retraced most of its lost value within a short time interval and is headed back towards $0.11 targets with a furious buying sentiment.

TRON Price Analysis

TRON underwent a surprise fall in its value within a concise time interval. The fall was responded with a huge buying action, almost equaling the selling volume on September 07 in the following day. TRON has once again jumped back to $0.0933. Surpassing the support zone will push the TRX price towards the close resistance of $0.11.

RSI levels have also jumped towards 52 from a steep decline, but the major uncertainty in sustaining the gains. If sellers activate their trades, we will witness a significant fall to the tune of its 100 DMA levels. As of now, TRON can be seen respecting its 200 DMA level of $0.08254. It is attempting a fresh price breakout but is more likely to close in an uncertain candle with wicks on both ends.

TRON price prediction

Hourly charts show consolidation as a large part of the trading action on TRX. It consolidates in a narrow range before giving a breakout and again consolidates within a narrow range. This price action is continuing, and there is a high probability of another breakout towards $0.100 levels. MACD on hourly trades has become positive again, and so has the RSI levels. RSI is now trading at above 50 levels. Combining all these indications and our TRX coin price prediction, one should hold their investments.

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MATIC: Can It Become the Bridge of Interoperability

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Polygon MATIC intends to resolve the problems of the Ethereum network to promote better incorporation of blockchain technology. Polygon came into play as Ethereum transaction fees increased to a level that started to affect scalability.

Polygon has also started to develop its network to support the Ethereum Defi Ecosystem. Another positive news coming in the Polygon counter is Mark Cuban’s unrevealed investment in Indian cryptocurrency, MATIC. This investment news at a time when all crypto counters are witnessing consolidation of profit booking has the potential to fuel another bull run MATIC.

In our MATIC price analysis, we have covered the technical chart and possible breakout zones, as this news can also cause a profit-booking by some. The only trouble to MATIC’s bull run could be ETH 2.0 scalability solutions launch. We know MATIC is working on building layer 2 solutions on the Ethereum network, hence it will be an interesting aspect to decide the future of MATIC.

Could MATIC Win the Ethereum Scaling Race?

Listing of the MATIC token on the Coinbase crypto trading platform has been a ground-moving reason for this cryptocurrency. The MATIC token is used as a transaction fee on all the dapps built using a polygon.

Polygon (MATIC) is currently emphasizing sustainable NFTs with the latest integration. Its Proof of stake mechanism offers better energy efficiency as compared to the Proof of work mechanism used by Ethereum. By moving the NFT transactions away from the main blockchain of Ethereum, Polygon is creating a sustainable market of itself.

The growth lead of Polygon even mentioned the prospects behind incorporating NFT as their blockchain network. Polygon joined the Polkastarter council on May 27, 2021, which is an independent authority that works on the selection process of Polkastarter IDOs. This can be a revolutionary event in scaling the value of the MATIC.

What does the Future Hold for the MATIC?

MATIC has a fixed token supply, a low market capitalization, and works on a network that is increasing its reach are some of the factors fueling further boost in this token. As of now, this cryptocurrency has become the 12th largest digital asset.

MATIC has moved up from the lows of $0.68 on 1st May to $2.89 on 19th May. The volatility of every cryptocurrency is the result of major profit booking and coin dumping. But even so, how does the MATIC coin price prediction fare with the expectation of the crypto-enthusiasts.

MATIC coin price prediction

MATIC price is currently trading well above all its important moving averages. There is a significant movement, which has pushed this coin over the $2 range twice. Currently, the price action is respecting its 30-day moving average. This cryptocurrency has been trading well above its important moving averages. Even in the short term support level of 30 days moving average.

If it fails to take support from its 7 days moving average, the prices could plummet to the $1.3 range. Although given its price action, such a level would be a good buying range. In the long run this coin seems positive as it is respecting the important levels.

MATIC News

Polygon Matic has been witnessing some stiff resistance near its all-time high. Earlier on May 19, the MATIC price fell from the same range during the profit booking session across the crypto market. MATIC coin, however, rebounded from just below $1 valuational to reclaim its previous high.

As evident from the chart patterns, the $2.45 levels will be instrumental for this crypto to reach new heights. There seems to be a support building near its last resistance levels, but any sell-off can push this coin back to the $0.80 range.

RSI indicator is also closing the oversold zones, indicating some weakness in the short term. A rebound from these levels can push MATIC to battle the stiff resistance around $2.45 and test its all-time high.

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What Does Market Cap Mean and Why Is it Important?

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Stock traders often come across the word “Market Capitalization” or “Market Cap.” Stock exchanges, Nasdaq, S&P 500, Dow Jones also use this term often. But what is a market cap? Market Cap is the market value of the outstanding shares of a publicly-traded company. Market Capitalization reflects only the equity shares of a company and its value is calculated by multiplying the share price with the number of shares outstanding. Market capitalization acts as a robust determinant of a company’s net worth and in some cases, it also determines the valuation of some stocks. It allows investors to compare the relative size of a company with others. It measures the company’s worth in the open market and the market’s perception regarding the prospects of a company by reflecting on what the investors are willing to pay for the company’s stocks.

The investment community also prefers to use Market Capitalization to determine the value of a company. It uses Market Capitalization instead of total sales or assets to rank companies as per their sizes. It is also used to rank the relative size of various stock exchanges like Nasdaq or S&P 500.

Types of Companies Based on Market Capitalization

Market CapitalizationTraditionally stocks are divided into three segments based on market caps, namely Large, Mid, and Small Cap stocks. However, the terms Mega-cap, Micro Cap, and Nano Cap have also come into existence recently. Different indexes use different numbers to categorize enterprises based on their capitalization, and there are no exact cutoff values for categorization based on market capitalization. The cutoffs may be defined and instead represented in dollars because dollars need to be adjusted over the years due to changes in inflation, population, and overall market valuation.

Large Cap

Stocks having a market value of 10 billion US dollars or more are termed as Large Capitalization stocks. These 10 billion US dollar worth share values generally represent large businesses that are major players in well-established industries. Large-capitalization stocks are known for producing high-quality goods and services and also for payments of consistent dividend payments to their shareholders. However, this is to be remembered that investing in Large Capitalization stocks does not guarantee the investors huge returns on their investments in the short run itself. But in the long run, the shareholders can expect steady growth in the dividend payouts.

Large Capitalisation stocks are often dominant players in the industry due to which the investments in Large-Capitalization firms are considered more conservative than investments in Small or Mid-Capitalization firms.

Mid Cap

Stocks with a market capacity that ranges between $2 billion and $10 billion are termed as Mid-Cap stocks. Mid Caps are also established businesses operating in an industry that is soon expected to experience rapid growth. These are the medium-sized enterprises that are in the process of increasing their market shares and improving their overall competitiveness.

Mid Cap stocks generally carry higher risks than Large Cap stocks because they are not still established as Large Cap stocks but are in the process of expanding. This stage of growth potential in the Mid Cap stocks determines whether they will eventually live up to their full growth potentials.

Mid Caps fall in between the Large Caps and the Small Caps in terms of associated inherent risks that the stocks have to bear. Mid-Caps offer more growth potential than large caps and carry less risk than Small Caps.Mid Cap

Small-Cap

Stocks having market capital within the range of $300 million shares value to $2 billion falls under Small Capitalisation stocks. Small Caps are generally new ones and are considered the highest risk investments in comparison to Large Caps and Medium Caps. Also, the relatively limited resources of these companies make them more susceptible to economic downturns. Due to this, the prices of Small Capitalisation stocks tend to be more volatile and less liquid than larger companies. But on a positive note, Small Capitalisation stocks provide greater growth opportunities because of their ability to withstand volatile share price fluctuations in the short term as compared to Large and Medium Cap companies.

Micro-Cap Companies

Small companies within the range of $50 to $300 million shares value are known and Micro-Cap companies. Microcap stocks differ from other stocks since they are generally traded on stock exchanges that do not require minimum standards, like the minimum number of stockholders or minimum amount of net assets.

However small the sizes of these companies are, Micro Caps (and sometimes Nano Caps) are considered good for investments owing to their fewer available resources. These companies can make their information available to the public very quickly. Due to the small size of these companies, Micro and Nano Caps companies do not attract the attention of the stockbrokers much, and therefore these companies can focus on specializing in innovative products or services that may otherwise remain unknown to the public. Over time, Micro Capitalisation stocks have managed to outperform other stocks from Large and Medium Cap companies.

On the other hand, despite these advantages, Micro Cap and Nano Caps stock are susceptible to fraud and market manipulation due to their highly volatile nature, which increases the transaction costs of these stocks. Also, sometimes the Micro Capitalisation stocks are criticized for inefficient pricing because of the fewer institutional investors operating in this space, and as a result, the liquidity of these stocks is also limited.

Why Is Market Capitalization So Important?

Market Capitalization So ImportantMarket Cap acts as a benchmark to calculate a company’s net worth, and therefore it is considered a very important assessment tool by the investment community. It is a basic parameter that is widely used in calculating important ratios like Market Cap to Sales. It is also used to compare similar companies and determine which is the most worth investing in. This is because the prices of stocks are affected by corporate actions like stock splits and bonus.

Here is why it is important to ascertain the Market Cap of stocks.

  • It is otherwise very difficult to ascertain whether a company is worth investing in. But with the correct ascertainment of the companies’ stocks’ market caps, it becomes easier to estimate a company’s value by extrapolating the market’s behavior about the company’s public trading.
  • Market capitalization helps in evaluating the company’s size, which yet again is a strong determinant of the extent of the risk factors associated with the company that the investors are willing to take up.
  • Market Cap reflects the price that the investors are willing to pay for a company’s stocks. However, this price may not be the business’s true value; there are other underlying factors as well. If the Market Cap is considered the only metric to determine whether a company’s stocks should be invested in or not, only the price factor is taken into account instead of other available data.
  • Market Cap data is often used to manage mutual funds. Companies holding these funds may allow investors to buy multiple stocks in a single transaction. As Mutual funds invest by category, it allows the investors to maintain a mixed portfolio of small-cap, mid-cap, and large-cap funds.

Factors Affecting Market Capitalization of Stocks

Over the years Large, Middle, and Small Caps companies have taken their terms in leading the stock market value as each of them responds to the economic developments in their respective ways; they are affected by several factors like fluctuations, dividend distribution by the companies, etc. Affecting Market CapitalizationAs Market Capitalization is the product of the number of shares and their values, any change in stocks’ prices, up and down, can bring in significant changes in the Market Capitalization of stocks. It could also bring in changes in the number of shares issued by the company as if there are any warrants in the issuance of the company’s stocks, the number of outstanding shares will increase and consequently, it will dilute the existing value of the outstanding shares.

A stock split or dividend can also alter the Market Capitalization of the stocks. After a stock split, the number of outstanding stocks increases significantly reduces the stocks’ prices. The same thing happens when a company issues a dividend. The issue of dividends increases the number of shares held by the company, which reduces the stocks’ price.

Therefore, the companies must maintain a proper balance while issuing shares, and this can only be obtained by building a portfolio consisting of a proper mix of small-cap, mid-cap, and large-cap stocks. A diversified portfolio containing a variety of Market Caps helps the companies to reduce their investment risks and also in accomplishing long-term financial goals. To obtain a proper mix companies need to first evaluate their financial goals, time horizon, and risk tolerance levels.

FAQs

  1. What Does the Market Cap Indicate?

Market Cap indicates the total value of the company’s stocks. is the method of measuring the size of a company that categorizes companies into three main blocks- Large Cap, Middle, and Small Cap depending on the companies’ total value of shares. Market cap often provides a benchmark in assessing the company’s worth in the open market. It also reflects the market’s perception of its prospects, and the willingness of the investors to pay for its stock.

  1. Is a High or Low Market Cap Good?

Market capitalization reflects a company’s stage in its business and economic development. Investments in Large-Cap companies are considered more conservative than in Small-Cap or Midcap companies. Mid Cap and Small Cap companies are more aggressive and, at the same time, more sensitive to economic downturns. But at the same time, Small Cap companies provide greater growth opportunities owing to their ability to withstand stock price fluctuations.

  1. Is the Market Cap the Value of a Company?

Yes, Market Cap represents the total value of a company in the open market. It reflects what the investors think about a company’s prospects and what value they are willing to pay for the company’s stocks. Market Cap reflects the company’s net worth, which is calculated by multiplying the number of outstanding shares of the company with the current market price.

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