Hi guys and gals and welcome to the new update on Verge coin. There are only a few hours left in the Verge block reward halving. As for now, the block reward is 400 coins per block and after this halving event, it will be decreased to 200 coins per block. This means that the supply will be decreased and for example if that demand will remain the same. Then automatically the balance will be changed and demand will be increased. And as a supply and demand rule of trading, the price can be increased.
http://halving.verge-blockchain.com/index.php
Struggling to breakout the 100 SMA on long term chart:
Now if we watch on the weekly chart then after breaking out from the falling wedge pattern. The price action is still struggling to break out the 100 simple moving average.
The SMAs on daily chart and expected golden cross:
On the daily chart the price action is above all simple moving averages. The 25 simple moving average is moving up to provide support to the price action. And the most important thing on this chart is that 50 simple moving average is likely to form the golden cross with 200 simple moving average. Once it will be formed then it will become a very strong support for the priceline and a strong bullish signal as well.
On The 2 day chart, the different support and resistance levels can be seen very clearly. At this time the price action is likely to move down after being rejected from $0.0075 resistance. The XVG has the recent support at the $0.006 and if it will be broken down then it has next support at $0.005. If the price action will break out the $0.0075 resistance then the next resistance will be at $0.0085 and after that, we have the big resistance at one cent.
The ichimoku cloud on long-term is still bullish:
Now I would like to draw attention towards a very powerful bullish gesture by the priceline of Verge currency on the weekly chart. And that is the Ichimoku cloud has turned bullish and the price action is entered in the cloud. At this time XVG is having support of the conversion line and baseline as well. The lagging span has already crossed up the price action and the conversion and base lines as well. Therefore we can expect that after this correction move the price action can start another upward rally to make another attempt for the breakout. Once the cloud will be broken out then it will become very powerful support for the priceline of XVG coin that will be helpful for the long term bullish rally.
Click here to create free account on tradingview to watch and play the chart on realtime
Conclusion:
On the short-term and midterm, the price action of XVG might move more down to re-test the previous support level or at least the 25 simple moving average on the daily chart. However, after the correction rally, it can start another strong bullish rally to break out the bearish Ichimoku cloud soon.
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.