Verge (XVG)/Bitcoin (BTC) Monthly chart analysis.
This monthly chart analysis of Verge requested on Twitter. It's been a painful one for Verge holders as Verge is one of the better known pump and dumps. HOWEVER, a lot remains to be seen and there could be relief on the way... if you are willing to be patient. There's good news and bad news.
The good news: Verge is essentially bottomed out... after a long 3 year downtrend, XVG has seemingly broken out of a wedge pattern in March.. although the formation began in April 2019. Not only that, the formation has formed a double bottom, and looks to be headed to a nice big cup and handle. But that is way too far away to determine.
The bad news: After a successful breakout of the wedge, this months candle seems to be bogged down by bearish pressure. However, we still have a few days to go. The RSI jumped upwards a fair amount for such a small price movement, that I would not be surprise if it breaks to the downside to form another bottom and wind up another round of bullish pressure. We MUST wait and see what the next monthly candle looks like before we can make a determination.
Best case scenario: This month closes out with bulls winning over the candle to continue the uptrend.. The RSI doesn't go too high.
Worst case scenario: The bears win the month, and unfortunately head for yet another bottom. On the bright side... a triple bottom can only be an indicator for a nice strong trend reversal.
In my opinion: Because of where the price is in comparison to the last 4 years... if you are going to accumulate Verge, now is the time. Losses will be minimal. I will stay neutral until we can confirm.
The good news: Verge is essentially bottomed out... after a long 3 year downtrend, XVG has seemingly broken out of a wedge pattern in March.. although the formation began in April 2019. Not only that, the formation has formed a double bottom, and looks to be headed to a nice big cup and handle. But that is way too far away to determine.
The bad news: After a successful breakout of the wedge, this months candle seems to be bogged down by bearish pressure. However, we still have a few days to go. The RSI jumped upwards a fair amount for such a small price movement, that I would not be surprise if it breaks to the downside to form another bottom and wind up another round of bullish pressure. We MUST wait and see what the next monthly candle looks like before we can make a determination.
Best case scenario: This month closes out with bulls winning over the candle to continue the uptrend.. The RSI doesn't go too high.
Worst case scenario: The bears win the month, and unfortunately head for yet another bottom. On the bright side... a triple bottom can only be an indicator for a nice strong trend reversal.
In my opinion: Because of where the price is in comparison to the last 4 years... if you are going to accumulate Verge, now is the time. Losses will be minimal. I will stay neutral until we can confirm.
Comment:
If i had to take a guess, simply by what I have seen in the market... I would think that we do not have the proper set up to continue running with the bulls quite yet. We just finished a run that formed a lower low.. however this latest monthly high formed a higher high. A double bottom has formed however I feel like this think has inverse H&S written all over it. This one I am going to go blind. Simply because any losses will be minimal. The price is so cheap. I personally would like to see the inverse H&S play out, since this would at least give us a trend reversal pattern. Give us SOMETHING to go by. It would be worth being patient for. Stay patient. Ladder down buys if you can't keep your money to yourself.