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.
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.
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