At BeInCrypto, we publish regular price analyses and predictions for various cryptoassets. In this analysis, we perform a technical analysis of VERGE using an XVG/USD($) trading pair. This enables us to predict short-term price fluctuations. Learn more below:
Verge (XVG): Highlights for April 18, 2019
- The price of XVG has been on a downtrend since Apr 11.
- It is trading inside a descending channel.
- Bearish divergence is developing in the RSI and the MACD.
- There is resistance near $0.0096.
Current Trading Pattern
In this section, we analyze the price of XVG/USD on Bittrex at one-hour intervals from Apr 11 to Apr 18 to trace the current trading pattern.
On Apr 11, the price reached a hourly high of $0.0092. Several market cycles have been completed, each time the price has reached lower highs.
Tracing these highs gives us a descending resistance line:
In addition. Verge reached a low of $0.0083 on Apr 11. This low was followed by a sharp increase. However, prices subsequently fell.
Lower lows experienced during this time are traced by a descending support line the graph below. Together, the support and resistance lines combine to create a descending channel:
It is likely that the price will keep trading inside the confines of this channel until a decisive move occurs.
In order to predict the direction of the move, we need to take a look at some technical indicators.
Technical Indicators
We begin with the MACD and RSI.The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
Both of these are shown in the chart below:
On Apr 16, the price reached a high of $0.0087. It reached a higher high of $0.0088 on Apr 18.
Similarly, the RSI and the MACD made the first high on Apr 16. However, they have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases.
The use of these indicators suggests that the price will eventually drop towards the support line of the channel.
However, it is possible that a sharp move occurs. If it does, where will price begin a reversal?
Reversal Areas
To determine the actual possible future price levels, we incorporate resistance areas into the analysis.Resistance areas are created when the price visits the same level several times. If a breakdown occurs, they can create possible areas of reversal.
These are shown in the graph below:
The closest resistance area is found near $0.0096. If the price breaks out of the channel it is likely to reach this area. We do not believe this will occur in the short-term.
Summary of Analysis
Based on this analysis, the price of XVG is likely to drop towards the support line of the channel. We cannot confidently predict a breakout or a breakdown. Do you think the price of XVG will break out from the channel? Let us know in the comments. Interested in 2019, 2020, and 5 year Bitcoin price predictions? Click on the green button below: 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.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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