Verge (XVG) price is up almost 600% since June 15th. The increase accelerated on July 3, leading to a new yearly high.
XVG price is currently trading at a crucial short-term and long-term horizontal resistance level. Whether it gets out or gets rejected will be key in determining the future trend.
Has Verge started an uptrend reversal?
XRP’s weekly technical analysis offers a bullish outlook for many reasons.
XVG price apparently broke down from the horizontal zone of $0.0018 in early June. This is a critical area as he had previously provided support since May 2017.
Thus, the breakout of it was seen as a decidedly bearish development that could lead to a strong sell-off.
However, the breakout proved to be illegitimate as XVG price immediately reversed (green circle), creating successive bullish weekly candlesticks.
In early July, XVG price broke out of a descending resistance line that had been in place for 784 days. Combined with the deviation and recovery, this confirmed that XVG price had started a bullish trend reversal.
The weekly RSI also supports the continued increase. The RSI is a momentum indicator used by traders to gauge whether a market is overbought or oversold and to determine whether to build or sell an asset.
Readings above 50 and an uptrend suggest the bulls still have an advantage, while readings below 50 indicate the opposite. The RSI is above 50 and moving higher, indicating that the trend is bullish and the rise will continue.
What’s behind the XVG price increase?
The daily time frame shows that the price of XVG is up nearly 600% since its yearly low on June 16. It paced the entire cryptocurrency market during this time. The rise especially accelerated on 3 July.
Over the past 24 hours, the XVG market capitalization has more than tripledbringing the coin to the top 250 based on its market capitalization.
This massive increase also resulted in a significant increase in trading volume. The 24-hour trading volume for XVG is $450 million. This puts it in the top 10 coins by trading volume, ranking in the top seven if stablecoins are removed. This is quite unusual for a coin ranked #249 by market cap at the time of writing.
XVG price is now trading at the $0.0090 resistance zone. This is both short-term and long-term resistance, which increases its importance. Therefore, if XVG price breaks out of it, it can almost increase tenfold to reach $0.0900.
However, Verge price was rejected on its first breakout attempt, creating a long upper wick (red icon). XVG may fall to the 0.618 Fib retracement support level if the rejection continues at $0.0046.
To conclude, whether XVG price breaks above the $0.0090 area or gets rejected can determine the future trend. A significant rally to $0.0900 could occur on a breakout.
However, if XVG price is rejected, a short-term retracement to $0.0046 might be in sight.
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In accordance with Trust Project guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.