Hello traders! Lets take a look at one of the more controversial coins in the cryptocurrency space, Verge!
Verge has seen huge price spikes since in the last weeks due to the likes of the fundraiser as well as big partnership announcements. The question on everyone's mind of course, "Will it continue to rise and go to the moon?" I think its very likely that it will and I'll show you why with the 6H chart.
Shown on the chart is the upward channel that XVG has respected since the start of its run up mid March. On each wave up XVG has touched the top of the channel and retraces appropriately back to the bottom of the channel before bouncing back up to the top. Looking at the chart we can see that XVG is currently at the bottom of the channel which might be a signal that the next bounce upwards is approaching. Considering that we still have a several days left until the partnership announcement there is a strong possibility of another upward movement before investors and traders "sell the news".
Let's not stop their and look for more data that can validate our hypothesis or contradict it. Using the Bollinger Bands (BB) we can see that the price has respected the middle band line and remained in the upper half of BB's. Additionally we see that the middle line has been hugging the bottom of the upward channel. If you know how BB's are calculated you know price will remain in the upper half of the bands about 47.7% of the time. So roughly speaking we have a nearly 50% chance that the price will continue in the upward half of the Bands which is an extremely positive sign.
Now the possibility that the channel breaks is still their, especially while we are currently on a retracement from the recent high of 1354 satoshis. Let's examine one last bit of datum that could solidify our hypothesis. Examining the chart we can see the formation of a descending triangle or wedge depending on how far you draw your lines. In terms of technical patterns the descending triangle/wedge is a continuation pattern of the trend (upward for us). Looking at the chart, price has dipped below the blue line of support and poked above the red line of resistance but has returned and closed within our pattern. This is a very bullish signal and another strong indicator that Verge will continue upwards!
Alright, let's combine our data thus far and see what we've come up with. XVG has been in an ascending channel for a while now making higher highs and higher lows on each wave but still remaining within the channel. In addition to the upward channel XVG has respected the upper half of the Bollinger Bands . Statistically we have a nearly 50% chance of price remaining in the upper half of the BB's which is pretty good odds. We also saw that coincidentally the middle band has lined up with bottom line of the ascending channel which is a good sign of a bounce incoming. Lastly, the formation of a continuatoin chart pattern (descending triangle/wedge) validates our hypothesis.
Personally I think we will break the descending triangle on the next 6 hour candle and bounce off middle band and bottom of the channel.
tl;dr 2.20% : MOOOONNNN!!
Disclaimer: Per usual lets throw in the BTC -0.98% talk. The market overall will react to the King. The strong bounce from BTC -0.98% up to 8k was a much needed sign of life for the market. However the bears are still awake and not hibernating and we're not out of the woods yet, so be careful!
Let's make that money! Leave a comment if you agree or disagree. I welcome all criticism.
Verge has seen huge price spikes since in the last weeks due to the likes of the fundraiser as well as big partnership announcements. The question on everyone's mind of course, "Will it continue to rise and go to the moon?" I think its very likely that it will and I'll show you why with the 6H chart.
Shown on the chart is the upward channel that XVG has respected since the start of its run up mid March. On each wave up XVG has touched the top of the channel and retraces appropriately back to the bottom of the channel before bouncing back up to the top. Looking at the chart we can see that XVG is currently at the bottom of the channel which might be a signal that the next bounce upwards is approaching. Considering that we still have a several days left until the partnership announcement there is a strong possibility of another upward movement before investors and traders "sell the news".
Let's not stop their and look for more data that can validate our hypothesis or contradict it. Using the Bollinger Bands (BB) we can see that the price has respected the middle band line and remained in the upper half of BB's. Additionally we see that the middle line has been hugging the bottom of the upward channel. If you know how BB's are calculated you know price will remain in the upper half of the bands about 47.7% of the time. So roughly speaking we have a nearly 50% chance that the price will continue in the upward half of the Bands which is an extremely positive sign.
Now the possibility that the channel breaks is still their, especially while we are currently on a retracement from the recent high of 1354 satoshis. Let's examine one last bit of datum that could solidify our hypothesis. Examining the chart we can see the formation of a descending triangle or wedge depending on how far you draw your lines. In terms of technical patterns the descending triangle/wedge is a continuation pattern of the trend (upward for us). Looking at the chart, price has dipped below the blue line of support and poked above the red line of resistance but has returned and closed within our pattern. This is a very bullish signal and another strong indicator that Verge will continue upwards!
Alright, let's combine our data thus far and see what we've come up with. XVG has been in an ascending channel for a while now making higher highs and higher lows on each wave but still remaining within the channel. In addition to the upward channel XVG has respected the upper half of the Bollinger Bands . Statistically we have a nearly 50% chance of price remaining in the upper half of the BB's which is pretty good odds. We also saw that coincidentally the middle band has lined up with bottom line of the ascending channel which is a good sign of a bounce incoming. Lastly, the formation of a continuatoin chart pattern (descending triangle/wedge) validates our hypothesis.
Personally I think we will break the descending triangle on the next 6 hour candle and bounce off middle band and bottom of the channel.
tl;dr 2.20% : MOOOONNNN!!
Disclaimer: Per usual lets throw in the BTC -0.98% talk. The market overall will react to the King. The strong bounce from BTC -0.98% up to 8k was a much needed sign of life for the market. However the bears are still awake and not hibernating and we're not out of the woods yet, so be careful!
Let's make that money! Leave a comment if you agree or disagree. I welcome all criticism.