Hi friends hope you are well and welcome to the new update on Verge coin. After mid of March 2020 the XVG coin has surged more than 500%. In today's post we will try to understand this move of price action of Verge coin.
The upcoming halving event and how it is being affected on price action:
On 25th May 2020 the coinmarketcal.com added a post about the upcoming halving event of Verge coin that is expected on 4th July:
https://coinmarketcal.com/en/coin/verge
coinpaprika.com also shared a retweet by Verge currency and it can be clearly seen in this tweet that the expected date for the halving event of XVG coin is 4th July:
https://coinpaprika.com/event/84301-verge-halving/
The date of this tweet was 14th May 2020. And if we see the coinmarketcap.com then on 14 May the market cap of Verge coin was 55.6 million dollars and at this time the market cap of Verge coin is 149.4 million dollars. So the market cap is increased by 170%.
https://coinmarketcap.com/currencies/verge/historical-data/?start=20200514&end=20200616
The expected bullish Shark:
In July 2019 I posted a chart. Where XVG was expected to complete the formation of bullish Shark pattern on weekly chart. And I predicted that as per Fibonacci sequence of Shark the priceline will move up from the potential reversal zone atleast between 0.382 to 0.786 Fibonacci projection of C to D leg.
Bullish Shark chart before execution:
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Bullish Shark chart after execution:
After the completion of the final leg of bullish Shark pattern. When the price action entered in the potential reversal zone unfortunately the priceline of Verge broke down this PRZ level in September 2019 and the stop loss was triggered. Then in November 2019 the price action again entered in the potential reversal zone and during this the price action also started the formation of another bullish Shark. Then after mid of March 2020 the XVG took a powerful police divergence from the potential reversal zone of this 2nd bullish Shark patter and produced more than 500% powerful bullish rally.
Breakout from the channel:
After March 2020 the price action of Verge was moving within in up channel like every top cryptocurrency. But the difference between the other cryptocurrencies and XVG is that most of them are still moving within this channel even some of them has broken down this channel. But Verge has broken out the resistance of the channel. If we watch on 14th May then the price action was moving at the support of the channel. But after the tweet by the verge currency it turned bullish and broke out the resistance of the channel and rallied more than 200%.
Breaking out the $0.005 and moving towards next resistance level:
The XVG had very strong resistance at $0.005. This resistance was not broken out since August 2019. But after announcement of halving in retweet the price action of Verge has broken out this resistance very easily and now moving towards next resistance of $0.01.
Simple moving averages:
If we place the simple moving averages with the time period of 25, 50, 100 and 200. Then it can be observed that the price action has crossed up the simple moving averages and the altitude of the price line is very high. And it does not have any immediate support of simple moving averages. Therefore if the price action of XVG will move down to retest the 25 SMA then it can retest the $0.005 level as support that was working as resistance before 8th Jun 2020.
Breaking out the big wedge pattern:
Now if we switch to the long-term weekly chart then Verge has formed a very big falling wedge pattern. And after taking bullish divergence of more than 500% the XVG has broken out the resistance of this big wedge pattern. During this rally the price action has broken out the 25 and 50 simple moving averages on this long term weedkly chart. And at this time the price action is struggling to break out the 100 simple moving average resistance level. If we take a closer look on the chart then it can be observed that 25 SMA is moving up to form a bull cross with 50 simple moving average just below the candlesticks. If this cross will be formed then it will be a very strong bullish signal and it can trigger more powerful move. The more positive signal is that the volume profile of the complete price action moving within this wedge pattern is showing the trader’s interest at $0.014. Therefore if the 100 simple moving average resistance will be broken out then we will witness a very rapid move up to this level.
Now if someone wants to buy Verge here and he or she should wait for one of two things. Whether the price action breakout the 100 simple moving average and then buy or wait for the correction rally up to $0.005 and try to buy at this level.
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Conclusion:
The XVG is trying to breakout 100 SMA on weekly chart once this resistance will be broken out then more powerful rally can be expected. In case the priceline won’t be able to breakout this 100 SMA resistance then a bearish rally upto $0.005 can be expected
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.