DGB -2088.12% YTD Due to Market Correction and Liquidity Constraints

On SEP 3 2025, DGB dropped by 154.95% within 24 hours to reach $0.00824, DGB dropped by 224.85% within 7 days, dropped by 24.15% within 1 month, and dropped by 2088.12% within 1 year.

DGB has faced a severe correction in the short term, with the 24-hour drop reaching a staggering 154.95%. This dramatic swing highlights the asset’s susceptibility to liquidity shocks and high volatility. The asset has not been immune to broader market sentiment shifts, particularly following key macroeconomic updates and regulatory developments in the crypto space. While the market continues to grapple with uncertainty, DGB’s sharp decline reflects the amplified risk exposure typical of lower-cap assets.

Technical indicators show that DGB has been trading below both its 20-day and 50-day moving averages, reinforcing the bearish trend. The Relative Strength Index (RSI) currently sits in oversold territory, at 17, suggesting a potential exhaustion of downward momentum. However, the price has failed to form a convincing bottom, with a lack of follow-through buying observed after brief rallies. Analysts project continued caution due to the absence of a clear catalyst for a reversal in the near term.

DGB’s year-to-date performance remains deeply negative at 2088.12%, which is the most significant decline among major altcoins. The one-month decline of 24.15% has also been sharper than the broader market average, indicating that DGB’s valuation is especially sensitive to capital outflows and speculative trading behavior. The asset has seen minimal institutional interest over the past several months, and its market depth has deteriorated, making it more vulnerable to large sell orders.

Backtest Hypothesis

A potential strategy to assess the viability of position trading in DGB has been designed using a rules-based approach. The backtest is structured to evaluate a long-only strategy triggered by RSI and moving average crossovers. Specifically, a long position is initiated when the 20-day moving average crosses above the 50-day moving average and the RSI is above 30. The strategy is exited when the 20-day moving average crosses below the 50-day line, or when RSI exceeds 70, signaling overbought conditions. The aim is to capture bullish momentum while limiting downside exposure. This method seeks to align entry and exit points with the observed technical behavior in DGB, which has shown a strong correlation with RSI levels and MA signals over the past year.