Trade Recommendation: Verge
The Verge/Bitcoin (XVG/BTC) pair traded inside a falling wedge pattern on the daily chart starting May 2018. However, recent price action has shown that the pair is gaining significant bullish steam. More importantly, the chart setup looks promising. There may be a potential growth of over 78% coming in a short time period.
Technical analysis show that XVG/BTC has broken out of a falling wedge pattern. The breakout looks attractive not because of an explosion in price but because of the extreme volume surge on July 31. XVG/BTC has not registered a volume like that since May 2018 when the correction started. This is a good indication that the market has reached the price point where demand exceeds supply.
Furthermore, technical indicators are flashing bullish signals. Both the RSI and the MACD are showing bullish divergences. In addition, the MACD line has crossed above the signal line. These indicators tell us that bulls are beginning to flex their muscles.
The strategy is to buy as close to 0.0000028 support as possible. The market is on the verge of back testing this support (no pun intended). If bulls hold it, then XVG/BTC is clear for take off. Initial target is 0.000005.
The process may take a month.
Daily Chart of Verge/Bitcoin on Binance
As of this writing, the Verge/Bitcoin pair is trading at 0.00000298 on Binance.
Summary of Strategy
Buy: As close to 0.0000028 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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