Why Digitalx (ASX:DCC) Surged More Than 100% in Recent Period?

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And will the Stock Chart pattern continue after recent consolidation?

On 29 June 2018 Digitalx Stock Price was closed at $0.075 from where the stock turned and provided more than 100% returns less than one month period. After touching the high of $0.175, the stock is currently trading at $0.145.

Positive Announcements in April month

In the month of April, Company made two major announcements. One was the launch of its funds management business, Digitalx Investments. As per the Company’s announcement, DigitalX Investments will be primarily investing in the leading cryptocurrencies, with a smaller allocation towards special trading opportunities including ICOs. Second announcement was relating to 50:50 Joint Venture with Multiplier. Combined entity will be targeting the crypto education sector by having two upcoming websites, Multipliercrypto.com and Coin.org. Aim of the both websites were to teach the Aussie public about cryptocurrencies and the technology behind them.

Digitalx’s Business Segments –

One of the best moves that Digitalx management did is “Diversification”. The Company did a smooth and intelligent diversification of its business in such a manner that over a longer time frame they will be growing quickly, efficiently meaning ensuring maximum utilisation of the existing resources and capabilities,  and with much lesser risk to overall operations.

Survivors will thrive

The crypto space is facing a pressure from earlier speculation and volatility. The genuine companies which are also performing poorly because of external environment and market forces. One thing which remains eminent is that Blockchain is here to stay. The companies which sail through and survive the current periods, will be the biggest beneficiaries of Blockchain revolution.  We believe the Digitalx is One of that companies.

BlackRock CEO Larry Fink said the world’s largest asset manager has assembled a working group to look at blockchain technology and cryptocurrencies such as bitcoin, but cautioned he does not see massive investor demand. Blackrock manages the $6.3 Trillion Asset Under Management.

Digitalx on Technical Levels

The Stock is consolidating in recent 1 week period after surging more than 100% in a month’s period. This Consolidation pattern is a good sign – Speculators who are in stock for very small time frame are out and stock has sustained its gains.

On a longer time frame, the Digitalx share price is still below its 52-week high price of $0.44.

Disclaimer

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