Why a Verge (XVG) Pre-Fork Breakout Might Take Longer Than Some Expect [Premium Analysis]

With the upcoming hard fork in December, this is an interesting time for Verge. However, the same cannot be said about the XVG price. It has been decreasing since November 15 — consolidating above the breakout level without much volatility. This almost changed on December 5. Cryptocurrency trader and advisor @scottmelker stated that the XVG price is close to breaking out above its current descending resistance line.

Bought some $XVG. Phone chart, sorry. I’ve been watching this for a while, looks like it’s breaking out. pic.twitter.com/4CNhVQIANg

— The Wolf Of All Streets (@scottmelker) December 5, 2019

Verge in an Ascending Triangle

Verge broke out above the resistance area at 47 satoshis on November 14. The price reached a high of 64 satoshis before returning to validate the resistance area as support. Afterward, the XVG price began to increase and created a possible ascending triangle. It is currently at the resistance line of this triangle.

Technical Indicators

When incorporating moving averages (MAs), we can see that a bullish cross has transpired between the 50- and 100-period MAs. However, the XVG price has found resistance at the 200-day MA. A breakout of the full height of the triangle would take the XVG price at 65 satoshis, inside a resistance area. This would also create a double top relative to the November 16 highs. Additionally, the XVG price has moved outside of its upper Bollinger band. The two previous times it did so, the price reversed. There is a bearish divergence in the RSI, visible up to the daily time-frame. This makes us believe that the XVG price will not break out on this attempt —rather, it may consolidate inside the triangle for a period of time before eventually doing so. To conclude, while the XVG price will likely break out, eventually, we believe it will consolidate within the triangle for some time before it does. It is possible that the XVG price will drop to validate the support line before beginning its gradual ascent.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.