Verge (XVG/BTC) looks intent on closing the year strong. While it recently printed fresh yearly lows, XVG/BTC appears to have no plans of lingering at the bottom.
The market dropped to as low as 0.00000138 on November 20, 2018. At that price, bottom pickers and bargain hunters started to scoop positions. The buying activity generated a dead cat bounce to 0.00000161 on November 22.
The brief rally was exploited by those who bought at the bottom. Verge pulled back but it managed to stay above 0.00000138. This price action indicated that a short-term bottom was in. As a result, XVG/BTC catapulted to 0.00000239 on November 29. While the market retraced, this told us that Verge has more upside potential.
Technical analysis shows that XVG/BTC breached resistance of 0.0000019 on December 20. This enabled the pair to break out of a symmetrical triangle on the daily chart. On top of the pattern breakout, Verge also managed to recover parabolic support of 0.0000018. This tells us that the drop to 0.00000138 could be a bear trap. The retest of 0.0000018 should confirm our view.
Currently, Verge is near oversold levels on the daily RSI. It is also struggling to stay above the 100-day moving average. These signals hint that the market is ripe for a pullback. This should give us the chance to buy Verge at a lower price.
The strategy is to buy on dips as close to 0.0000018 as possible. As long as bulls stay above this level, XVG/BTC will likely rally to our target of 0.00000325.
The process may take more than a month.
Daily Chart of Verge/Bitcoin on Binance
As of this writing, the Verge/Bitcoin pair is trading at 0.00000203 on Binance.
Summary of Strategy
Buy: As close to 0.0000018 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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