Trade Recommendation: Verge

The Verge/Bitcoin (XVG/BTC) pair came off lows of 0.00000165 on August 14, 2018. At this price, the pair has lost over 90% of its value from the 2018 high of 0.0000171. Like many altcoin pairs, however, XVG/BTC started to show signs of life just as the situation looked hopeless.

The market climbed to as high as 0.00000278 on September 2 with volume that’s over 280% of its daily average. This was a good signal that bottom pickers and bargain hunters were buying the market. Though XVG/BTC has pulled back since, we believe that it will show bullishness soon.

Technical analysis reveal that Verge/Bitcoin is creating a symmetrical triangle pattern on the daily chart. The pair appears to have recently completed its E wave or the last leg down of the triangle. It is positioning to take out resistance and reverse its trend.

In addition, the RSI has been generating a series of higher lows. It looks to be preparing to take out resistance of 60 and breakout from its own ascending triangle.

The strategy is to buy the breakout at 0.0000023 after the market prints volume of 260 million Verge units. Bottom pickers are still taking profits. XVG/BTC needs buyers to take on the selling pressure.

Once breakout is complete, it is likely that there will be a rally to our target of 0.0000034. The process may take less than one month.

Daily Chart of Verge/Bitcoin on Binance

As of this writing, the Verge/Bitcoin pair is trading at 0.00000227 on Binance.

Summary of Strategy

Buy: Breakout at 0.0000023 with volume of 260 million Verge units.

Target: 0.0000034

Stop:  0.00000215 after the breakout.

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.