$XVG-BTC | Is Verge set for a bullish bounce or going to crash?
Updated
My Assumptions:
1. Bitcoin doesn't do any crazy moves.
2. The Verge team screwed up the chart with the overhyped announcement of the partnership with Pornhub. Some people may have lost their believe in XVG.
3. The spike around the date of the announcement doesn't count.
4. The Fans of Verge are strong hodlers.
My Predictions:
We're looking at the 4h chart, the yellow trend line is drawn on the daily in log scale and has a lot of touches, so I'm pretty confident with this trend. There are 2 support lines, that form a nice descending triangle with the yellow line. The first (white) is at around 630-640 and seems to be the recent low. But the RSI is not oversold, so we could see a drop below this line if there is a another rejection off the yellow line or if Bitcoin crashes. So the more important support line to watch is the red line at around 615. This one acted as support for a long time during February and aligns perfectly with the 200-day MA. If we break below this support, I expect a big drop. Maybe down to the 500s-area. But I think a bullish breakout is more likely since Verge often bounces up strong from descending triangles. A scenario like on February 15 with a huge bullish engolfing candle after a temporary break below the support line is possible as well. For profits I'm aiming for the 720-750 range, not sure how strong the bullish momentum can be at the moment. We will see what happens first within the next hours! :-)
Possible Trades:
Buy Zone: 650-620
Sell at T1: ~15% profit
What do you guys think about this idea?
Sources:
Partnership with Pornhub: https://www.forbes.com/sites/curtissilver/2018/04/17/pornhub-partners-with-verge-cryptocurrency-shifting-the-future-of-porn-payments/#426c0b7d24b5
None of this is financial advice, of cause. I am just drawing fancy looking lines on my screen.
1. Bitcoin doesn't do any crazy moves.
2. The Verge team screwed up the chart with the overhyped announcement of the partnership with Pornhub. Some people may have lost their believe in XVG.
3. The spike around the date of the announcement doesn't count.
4. The Fans of Verge are strong hodlers.
My Predictions:
We're looking at the 4h chart, the yellow trend line is drawn on the daily in log scale and has a lot of touches, so I'm pretty confident with this trend. There are 2 support lines, that form a nice descending triangle with the yellow line. The first (white) is at around 630-640 and seems to be the recent low. But the RSI is not oversold, so we could see a drop below this line if there is a another rejection off the yellow line or if Bitcoin crashes. So the more important support line to watch is the red line at around 615. This one acted as support for a long time during February and aligns perfectly with the 200-day MA. If we break below this support, I expect a big drop. Maybe down to the 500s-area. But I think a bullish breakout is more likely since Verge often bounces up strong from descending triangles. A scenario like on February 15 with a huge bullish engolfing candle after a temporary break below the support line is possible as well. For profits I'm aiming for the 720-750 range, not sure how strong the bullish momentum can be at the moment. We will see what happens first within the next hours! :-)
Possible Trades:
Buy Zone: 650-620
Sell at T1: ~15% profit
What do you guys think about this idea?
Sources:
Partnership with Pornhub: https://www.forbes.com/sites/curtissilver/2018/04/17/pornhub-partners-with-verge-cryptocurrency-shifting-the-future-of-porn-payments/#426c0b7d24b5
None of this is financial advice, of cause. I am just drawing fancy looking lines on my screen.
Note
Ok, the first bounce level is off the table, the second is still in play. But since the overall sentiment in the altcoin market is so negative, I'm tending more to the bearish scenario.Trade closed: stop reached
The Verge team f**ked up once more and got hacked, AGAIN. Unbelievable.
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