Digital

Verge (XVG) Price Skyrockets, Potential Bullish Trend Reversal Ahead

Picture Source: BeInCrypto

In recent weeks, the price of Verge (XVG) has experienced an astonishing surge, with a nearly 600% increase since June 15. The momentum intensified on July 3, pushing the cryptocurrency to reach a new yearly high. As XVG finds itself at a crucial resistance level, the question arises: will it break out and continue its bullish trajectory, or face rejection and undergo a potential retracement?

Weekly Analysis Signals Bullish Outlook:

Examining the weekly time frame, technical analysis suggests a bullish outlook for XVG, presenting several favorable indicators. Initially, the XVG price appeared to break down from the $0.0018 horizontal support area in early June, sparking concerns of a significant sell-off. However, the breakout turned out to be deceptive, as XVG swiftly reversed its course, forming successive bullish weekly candlesticks. Furthermore, in early July, XVG broke free from a descending resistance line that had persisted for an impressive 784 days. This breakout, coupled with deviations and a subsequent reclaim, confirmed the initiation of a bullish trend reversal.

RSI and Momentum Support the Surge:

The weekly Relative Strength Index (RSI), a tool used by traders to gauge market conditions, further reinforces the ongoing price surge. An RSI reading above 50, coupled with an upward trend, indicates a bullish market sentiment and suggests the continued dominance of the bulls. In the case of XVG, the RSI is currently above 50 and moving upwards, indicating a favorable trend and potential for further price appreciation.

Factors Driving the XVG Price Increase:

Analyzing the daily time frame, the data reveals that XVG has experienced a remarkable surge of nearly 600% since reaching its yearly low on June 16. This surge has outpaced the overall cryptocurrency market, with an accelerated increase witnessed on July 3. Notably, XVG’s market capitalization has more than tripled within the past 24 hours, propelling the coin into the top 250 based on market capitalization rankings.

Additionally, this exponential growth has been accompanied by a substantial increase in trading volume. XVG’s 24-hour trading volume currently stands at $450 million, placing it among the top 10 coins in terms of overall trading volume, and even ranking in the top seven if stablecoins are excluded. Such trading activity is unusual for a coin that holds the #249 position in terms of market capitalization.

Crucial Resistance Level and Potential Outcomes:

At present, XVG finds itself trading at the critical $0.0090 resistance level, which holds significance in both the short and long term. A successful breakout from this level could potentially propel XVG to surge nearly tenfold, reaching $0.0900.

However, it is worth noting that XVG faced rejection during its initial breakout attempt, resulting in a long upper wick on the price chart. If the rejection continues, there is a possibility of a short-term retracement to the 0.618 Fibonacci retracement support level, at $0.0046.

Conclusion:

The future trend of Verge (XVG) hangs in the balance, with the outcome dependent on whether the price breaks out above the $0.0090 resistance area or faces rejection. Should the breakout materialize, a significant rally to $0.0900 could be on the horizon. Conversely, if the XVG price is rejected, a short-term retracement to $0.0046 becomes a potential scenario. As investors and traders closely monitor these developments, the Verge market remains an exciting space to watch, offering the potential for substantial gains or corrective moves in the near future.

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