Diginex Plunges 11% Amid Volatile Crypto Sector Turmoil – What’s Fueling the Selloff?

Summary
• Diginex (DGNX) tumbles 11.21% intraday to $7.112, hitting a 52-week low of $6.85
• Institutional buying surges with $1.41M inflows over 12 months
• Sector-wide crypto weakness amplifies selloff as Bitcoin dips below $87K
• Technical indicators signal bearish momentum with RSI at 23.62 and MACD divergence

Diginex’s sharp decline mirrors broader crypto market fragility, as Bitcoin and Ethereum retreat amid U.S. trading hours. With institutional inflows and bearish technical signals converging, the stock’s 11% drop underscores a critical inflection point for investors. The intraday range from $6.85 to $7.99 highlights extreme volatility, while sector peers like Coinbase (-6.12%) amplify the bearish narrative.

Bearish Technical Signals and Sector-Wide Jitters Drive Sharp Decline
Diginex’s 11.21% intraday plunge is fueled by a confluence of bearish technical indicators and sector-wide crypto weakness. The stock’s RSI of 23.62 signals oversold conditions, while the MACD histogram (-2.20) reveals bearish divergence from the signal line. A sell signal from the 3-month MACD and long-term moving averages (30D: $13.195, 200D: $50.37) confirms a deteriorating trend. Compounding this, Bitcoin’s drop below $87K and Ethereum’s retreat to $3K exacerbate risk-off sentiment, dragging Diginex into the sector’s freefall. Elevated volatility (11.91% daily range) and a 90% probability of a $2.35–$20.70 range in the next 90 days further justify the selloff.

Crypto Sector Reels as Bitcoin Slides Below $87K – Diginex Follows Broader Downtrend
The Blockchain and Cryptocurrency sector is in freefall, with Bitcoin’s 4.12% drop to $86,800 and Ethereum’s 0.90% decline to $3K amplifying risk-off sentiment. Diginex’s 11.21% intraday loss aligns with sector leaders like Coinbase (-6.12%) and Hut 8 (-13.73%), which are collapsing amid U.S. trading hours. The sector’s poor performance during American market hours—exacerbated by regulatory uncertainty and macroeconomic jitters—has created a self-reinforcing bearish cycle. Diginex’s institutional inflows ($1.41M) contrast with its technical bear case, highlighting a tug-of-war between long-term optimism and short-term panic.

Bearish Playbook: Options and ETFs to Capitalize on Diginex’s Freefall
• 200-day average: $50.37 (far below current price)
• RSI: 23.62 (oversold)
• MACD: -2.20 (bearish divergence)
• Bollinger Bands: $6.54 (lower band) vs. $15.02 (upper band)

Diginex’s technicals scream for bearish positioning. The stock is trapped in a 52-week range of $0.45–$39.85, with support at $7.93 and resistance at $8.53. A 5% downside scenario (to $6.76) would trigger put options like DGNX20251219P7.5 (strike: $7.50, IV: 261.74%, delta: -0.491) and call options like DGNX20260116C7.5 (strike: $7.50, IV: 104.93%, delta: 0.516).

Top Option 1: DGNX20251219P7.5
• Code: DGNX20251219P7.5
• Type: Put
• Strike: $7.50
• Expiry: 2025-12-19
• IV: 261.74% (extreme volatility)
• Delta: -0.491 (moderate sensitivity)
• Theta: -0.0495 (moderate time decay)
• Gamma: 0.1808 (high sensitivity to price swings)
• Turnover: 2,612 (liquid)
• Leverage: 6.86% (moderate)
• Payoff (5% down): $0.74 (max profit if price hits $6.76)
This put option offers high leverage and liquidity, ideal for capitalizing on a short-term breakdown below $7.50.

Top Option 2: DGNX20260116C7.5
• Code: DGNX20260116C7.5
• Type: Call
• Strike: $7.50
• Expiry: 2026-01-16
• IV: 104.93% (elevated)
• Delta: 0.516 (moderate sensitivity)
• Theta: -0.0174 (low time decay)
• Gamma: 0.1755 (high sensitivity)
• Turnover: 1,693 (liquid)
• Leverage: 9.11% (moderate)
• Payoff (5% down): $0.00 (no profit if price falls)
• This call option is a speculative long-term play, suitable for a rebound above $8.53 resistance.

Action Alert: Aggressive bears should prioritize DGNX20251219P7.5 for a 5% downside target. If $7.50 breaks, the put’s gamma and IV could amplify returns. For a bullish bounce, DGNX20260116C7.5 offers a low-cost lottery ticket.

Backtest Diginex Stock Performance
The backtest of DGNX's performance after a -11% intraday plunge from 2022 to now shows mixed results. While the 3-day win rate is 47.27%, the 10-day win rate is 59.09%, and the 30-day win rate is 48.18%, indicating a higher probability of positive returns in the short term, the maximum return during the backtest period was only 13.75%, with a maximum return day at 49. This suggests that while DGNX has a good chance of recovering from a significant drop, the overall performance after such an event is modest.

Diginex at Inflection Point – Sector Weakness and Technicals Signal High-Risk Reckoning
Diginex’s 11.21% intraday plunge is a microcosm of the crypto sector’s fragility, driven by bearish technicals and Bitcoin’s selloff. With RSI at 23.62 and MACD divergence, the stock faces a critical test at $6.54 (Bollinger lower band). Investors should monitor the $7.93 support level and $8.53 resistance for potential reversals. Sector leader Coinbase (-6.12%) underscores the broader risk-off environment. Act now: Short-term bears should target DGNX20251219P7.5 for a $7.50 breakdown, while long-term bulls may consider DGNX20260116C7.5 for a speculative rebound. Watch for a $7.50 pivot point—break below for bearish confirmation.