Since June 15th, the price of Verge (XVG) has seen a massive rally of nearly 600%. This upward movement gained further momentum on July 3, which resulted in a fresh yearly high.
Currently, XVG price is trading at a critical horizontal resistance level that holds importance in the short and long term. The outcome of whether XVG breaks from this level or faces rejection will play a vital role in shaping its future direction.
The Verge closes consecutive bullish weeks
The weekly analysis of the XVG technical indicators indicates a positive outlook for several reasons.
In early June, XVG price appeared to break below the $0.0018 support level, which had been in place since May 2017. This breakdown was initially seen as a bearish sign that could lead to a significant drop in the price.
However, it turned out that the hack wasn’t real. XVG price quickly reversed direction (green circle) and formed a series of bullish weekly candlesticks. Japanese candlesticks have been particularly bullish over the past two weeks, causing an increase of nearly 600%.
In early July, XVG price broke out from the descending resistance line that had existed for 784 days. This breakout, together with a divergence from the previous pattern and a subsequent recovery, confirmed the start of an uptrend reversal for XVG.
In addition, the weekly RSI supports the sustained upward movement. The RSI is a tool that traders use to assess whether a market is overbought or oversold. It is then used to decide whether to buy or sell an asset.
When the RSI reading is above 50 and trending higher, this indicates that the bulls are holding an advantage. On the other hand, readings below 50 indicate the opposite. Currently, the RSI for XVG is above 50 and showing an upward trend. This indicates a bullish market sentiment and indicates that prices will continue to rise.
XVg Price Prediction: Will a 600% Price Increase Be Sustainable?
A closer look at the daily time frame shows that the price of XVG has seen a significant rally of almost 600% since hitting its lowest point in the year on June 16th. It outperformed the entire cryptocurrency market during this period, with a notable acceleration on July 2nd and 3rd. .
Currently, XVG price is trading around the $0.0090 resistance level, which holds importance in the short and long term. A break above this resistance could lead to a tenfold increase to around $0.0900.
However, it is important to note that during the initial breakout attempts, Verge price encountered rejection, which resulted in several long upper wicks (red icons). If this rejection continues at $0.0046, XVG could drop towards the 0.618 Fibonacci retracement support level.
In conclusion, the future direction of XVG is still undetermined. It depends on whether the price managed to breach the $0.0090 level or face a sustained rejection.
A break could lead to a significant rally towards $0.0900, while a rejection could signal a short-term bounce towards $0.0046.
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Disclaimer
In line with 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 providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
