Digatrade Financial Corp (OTCMKTS: DIGAF) is a potential break out play after reaching a bottom. The stock has started bottoming out after shedding more than 80% in market value over the past year.
DIGAF Price Action
An uptick in market sentiments, as well as price action activity, comes on the heels of the company entering into a letter of intent to develop a secure credit card payment platform. The company inking strategic partnerships with the aim of coming up with security tools for credit card transactions also continues to strengthen the stock’s sentiments in the market.
After months of consolidation, the stock’s upside action has started picking up some steam, signaling a potential breakout from a tight trading range. The $0.02 mark is the immediate technical level that the stock needs to rise and find support above, to avert concerns of further slides.
Above the $0.02 resistance level, Digatrade Financial remains well positioned to make a run for the $0.06 mark, seen as the next substantial resistance level. Conversely, below the $0.02 mark, the stock remains susceptible to further drops given the underlying long-term bear trend.
What Does Digatrade Financial Do?
Digatrade Financial is a financial technology company that operates a digital asset exchange platform in Canada. The company facilitates buy-side cryptocurrency transactions as well as liquidity to institutions. It also offers blockchain development services and ledger technology.
Credit Card Security Solutions
Digatrade Financial has started showing signs of bottoming out from all-time lows in line with improved sentiments in the blockchain and cryptocurrency sector. Investors sentiments in the broader sector has inched higher after a rollercoaster 2018 that saw most digital assets shed more than 80% in market value.
Digatrade sentiments in the market have also inched higher on inking strategic partnerships as it seeks to come up with secure solutions for facilitating credit transactions. In February, the company signed a letter of intent with Securter Inc. as part of an effort of coming up with new technology for facilitating secure credit card transactions.
The purpose of the new technology, which the two companies are working on, is to reduce financial losses incurred by financial institutions and merchants due to fraudulent credit card use. The technology in the pipeline will also go a long way in protecting cardholder’s data at a time when privacy is a big issue.
“Digatrade/Securter will monetize its technology by sharing global credit card transaction-fee revenue with participating payment processors. The revenue sharing model has produced the fintech giants that operate in today’s global payments system,” Digatrade Financial in a statement.
Cryptocurrency and Blockchain Focus
Digatrade Financial is also planning to expand the usefulness of cryptocurrencies in real life situations as part of its growth strategy. The company has already acquired Securter’s online credit card security technology as it continues to strengthen its credentials as a fintech innovation-driven company.
The ultimate goal of the new drive is to make cryptocurrencies more relevant for ordinary situations. The company intends to unveil a series of cross-disciplinary applications as part of its fintech agenda.
Focusing on untapped development and commercialization opportunities around the blockchain technology ecosystem is top on the agenda according to CEO, Brad Moines.
Digatrade Financials is also to implement a business model that will make it immune to downward fluctuations in Bitcoin and other altcoin valuations.
“We are collaborating with thought leaders in this field to mine the technology itself and deliver really useful applications that are not already overdone in this space. An example is something as basic as being able to buy cryptocurrency easily, securely and in small quantities by credit card and to spend it just as easily and securely, by multiple methods,” explains Mr. Moynes.
Development of solutions for ensuring secure credit card transactions as well as protection of cardholder’s privacy should continue to affirm Digatrade Financials long-term prospects.
Recent price action provides clear evidence that a positive trend is materializing after a long period of consolidation at all-time lows. Renewed investor interest is one of the reasons why DIGAF has started bottoming out from all-time lows.
The upward momentum is likely to continue gathering pace as the company continues to strengthen its prospects in the fintech space.
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Disclosure: We have no position in DIGAF and have not been compensated for this article.