Hello Everyone!
I'm sure some of you are looking at the XVG chart and thinking "What the heck is going on?".
The truth is, no one knows for sure!
Now, of the many possibilities, I'm showing the one that I believe is the most probable.
So, lets take a look.
XVG seems to be forming a descending right triangle (Big Picture), with its hypotenuse being the dashed red line, and its base being one of the dashed green support lines.
Now, I know what you may be thinking..."A descending right triangle? Isn't that supposed to be bearish?"
You are absolutely correct! However, although a descending right triangle is generally bearish, there are times where it can be seen as extremely bullish.
One indicator I tend to look at when making this decision is volume. Since the last massive run up which ended around April 10, 2018, volume has gone down tremendously and continues to decrease. This is a recipe for some explosive power in the market as sellers are running out of power, which only leaves room for buyers.
Currently, within the descending right triangle, we are playing within a downward wedge (blue), which is seen as bullish.
I believe that price could continue to fall to one of the green support lines, where we could see a nice bounce up.
Does price have to reach the apex of the wedge before it goes up? Of course not, we could see a nice swing up before it touches the first green support line!
What would give me a greater degree of confidence as I play within this wedge? When price does finally move out of the wedge, we need to see an explosion up, then perhaps price falls to the top of the wedge where it can rest before its next rally up.
So, where should you be buying in?
For my self, I never take 1 position in any coin. I always ladder my way into multiple positions, so setting buy orders at each support level would make sense. Now even if more position doesn't fill, I can always take that order and stick it above the current price if I believe the rally will continue to go higher. Take bites, never chunks.
If the downward wedge is truly in play, we could see a rally up to the red solid line. This red line should not be taken as concrete on where price will go to, rather an area. Just as we laddered in, we should ladder out.
This fits nicely into our big picture descending right triangle, as it would bring us to about the dashed red hypotenuse resistance line (~70% - ~160% profit potential, short term)
From there, we could see price continue to move within the descending right triangle, until finally an explosive movement up, and a pathway to ~1000%+ profit potential. (Long term).
XVG looks yummy, and I know I am taking some bites.
I'm sure some of you are looking at the XVG chart and thinking "What the heck is going on?".
The truth is, no one knows for sure!
Now, of the many possibilities, I'm showing the one that I believe is the most probable.
So, lets take a look.
XVG seems to be forming a descending right triangle (Big Picture), with its hypotenuse being the dashed red line, and its base being one of the dashed green support lines.
Now, I know what you may be thinking..."A descending right triangle? Isn't that supposed to be bearish?"
You are absolutely correct! However, although a descending right triangle is generally bearish, there are times where it can be seen as extremely bullish.
One indicator I tend to look at when making this decision is volume. Since the last massive run up which ended around April 10, 2018, volume has gone down tremendously and continues to decrease. This is a recipe for some explosive power in the market as sellers are running out of power, which only leaves room for buyers.
Currently, within the descending right triangle, we are playing within a downward wedge (blue), which is seen as bullish.
I believe that price could continue to fall to one of the green support lines, where we could see a nice bounce up.
Does price have to reach the apex of the wedge before it goes up? Of course not, we could see a nice swing up before it touches the first green support line!
What would give me a greater degree of confidence as I play within this wedge? When price does finally move out of the wedge, we need to see an explosion up, then perhaps price falls to the top of the wedge where it can rest before its next rally up.
So, where should you be buying in?
For my self, I never take 1 position in any coin. I always ladder my way into multiple positions, so setting buy orders at each support level would make sense. Now even if more position doesn't fill, I can always take that order and stick it above the current price if I believe the rally will continue to go higher. Take bites, never chunks.
If the downward wedge is truly in play, we could see a rally up to the red solid line. This red line should not be taken as concrete on where price will go to, rather an area. Just as we laddered in, we should ladder out.
This fits nicely into our big picture descending right triangle, as it would bring us to about the dashed red hypotenuse resistance line (~70% - ~160% profit potential, short term)
From there, we could see price continue to move within the descending right triangle, until finally an explosive movement up, and a pathway to ~1000%+ profit potential. (Long term).
XVG looks yummy, and I know I am taking some bites.