Hi friends is hope you are doing well and welcome to the new update on Verge coin. The XVG coin has surged more than 500% with US dollar pair and 205% with Bitcoin pair. In my previous article I posted analysis with US Dollar pair if you missed that then here is the link for that post:
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In today's article we will watch the movement of XVG coin with Bitcoin pair.
The formation of Shark and powerful bullish divergence:
On daily chart the price action of XVG formed a bullish shark from October 2019 to the end of January 2020. And after entering in the potential reversal zone the price action moved up and after a small bullish rally dropped down again in the potential reversal zone then took another powerful bullish divergence and produced more than 205% bullish rally.
Different indicators and oscillators and turning bullish:
If we watch the different indicators and oscillators on the daily chart. Then stochastic oscillator has given bull cross from the oversold zone, the MACD is also turning bullish and if we watch the directional movement indicator then positive directional indicator is already above the negative direction indicator. And the ADX is up with the value of 45 that is showing the power of bulls. Therefore we can expect another upward move from here.
The simple moving averages and another bullish spike:
If we watch the different simple moving averages on the daily chart with the time period of 25 50 100 and 200 then it can be clearly observed that since the price action has crossed up all these moving averages after that for the first time the priceline is retesting the 25 simple moving average as a support. And after moving sideways on this 25 SMA finally the price action has spiked more than 15% in a single day. And the more important indication on this chart is that we have the smallest time period moving average above all other simple moving averages and the biggest time period moving average with time period of 200 below all the other moving averages. Therefore a complete open alligator mouth is formed by the simple moving averages that can be a really big bullish signal.
A big harmonic Shark move:
Now I would like to share a very important harmonic move by the price action of verge coin on the long-term monthly chart. And that move is the formation of bearish Shark pattern. I also shared this move of XVG coin last year in July 2019. And at that time I found that the price action has found a final support at 0.00000048 sats. Therefore it would be difficult for the priceline to break down this level. Since then the priceline is moving above this level in the potential reversal zone of bearish Shark. And at any time it can start the formation of final leg. And the completion of this leg can lead the price action to produce up to 4400% big profit move.
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However, I have defined two types of targets 1st one are the secure sell targets and the other one are the aggressive sell target up to the completion of shark’s leg. And these targets are as below:
Buy between: 0.00000208 to 0.00000048 sats
Secure sell targets: 0.00000671 to 0.00001331 sats
Aggressive sell targets (Upto the completion of Shark's leg): 0.00001793 to 0.00002194 sats
Conclusion:
If we take a look at the history of the price action of XVG coin. Then it can be seen that whenever the BTC turns bullish the Verge coin turns more bullish than Bitcoin. The obvious example can be seen in 2017. Therefore when the Bitcoin will start the next big move the XVG has the potential to produce a more powerful move than Bitcoin. Therefore we can expect a big move by the Verge coin to hit the sell targets as per the above pattern before the Bitcoin achieves any big price level.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.