Verge continues its three-month long downtrend with a further 8.2% drop against BTC on Friday, quashing hopes that the rising Bitcoin market would provide XVG with an opportunity to recover its losses.
New developments have been few and far between since the Pornhub partnership disaster that crippled the currency’s price action earlier in April. Verge had teased the community, pledging to announce the biggest partnership in crypto, and speculations that the partner would be Amazon (NASDAQ:AMZN) created huge interest in the lead up to the announcement, but when it finally arrived investors were less than impressed and the price has failed to gain traction since.
Looking at Verge’s roadmap however, we can see some promising new developments going on behind the scenes that could create new bullish opportunities in the near future.
- RingCT is in development right now at 35% completion, which will allow Verge users to mask their trading amounts over the network.
- Verge have also stated that they are looking to integrate RSK smart contracts, which is at 25% completion.
- The project is also planning on creating an I2P anonymous mobile wallet sometime in 2019.
Right now the asset is resting back along its base support at 330 Sats where it was able to springboard back bullishly out of the heavy bear market in March this year. Can we expect history to repeat itself over the coming weeks? Or will this bearish episode continue into next month? Let’s take a look.
On the XVG/BTC chart over 4hrs we can see that Verge has completed another ‘boom bust’ cycle, having finally corrected back to the support after surging through April on the aforementioned partnership hype.
Momentum over this week has dropped significantly, causing XVG to break bearish through the base support, as Bitcoin’s progress in the market slows down again. Key supports for this asset now are along the 240 Sats mark and the 200 Sats mark at the 0.0 fib level, but we could see a brief bounce back above the base support if traders catch XVG when it oversells on the RSI indicator.
If this is the case and XVG does manage to claw back some ground, it may not be enough to encourage a bullish reversal. On the charts we can see several bearish indicators that are likely to deter investors from jumping into orderbook just yet;
- Looking at the EMA lines we can see that prior to this recent drop in momentum, XVG was actually travelling well sideways for an extended three-week period, allowing the 50 EMA to begin catching up to the 200 EMA. For now, though, we will need to see much stronger trading volumes to achieve a ‘golden crossover’ between these moving averages.
- Ichimoku has just flipped over from a projected support to a resisting kumo cloud and supports a downtrending continuation with a bearish T/K crossing.
- MACD is lagging below the signal line, showing no signs on converging back at this moment in time.
- Candles on the Chaikin Money Flow indicator are also well below the zero line, telling us that candles are trending beneath their opening values.
- Bollinger bands are starting to expand, with candles dropping below the lower band as selling pressure increases.
Verge (XVG) price predictions
All ROI’s and losses are set from the 317 Sats mark where the asset is currently valued.
Price Target 1 (Bullish): In anticipation of a rebound, the asset is likely to recover back to the 330 Sats base support (4.10% ROI) but will struggle to break through it and continue further.
Price Target 2 (Bearish): From here XVG will probably incur further bearish opposition until it finds strong support at 240 Sats (-24.29%) where bullish traders are likely to begin collecting.
Once support arrives for XVG they will need to overcome a strong overlapping resistance area between the downtrending and base support levels.
This article appeared first on Cryptovest
