Verge Price Analysis: XVG/USD Correction from Strong Rally

Verge recently spiked roughly 30% in the past 24 hours on account of its addition into an EU exchange. Price hit a roadblock at the 0.0200 mark, though, and a pullback appears to be taking place.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with a broken resistance, which might now hold as support. This is also around the dynamic inflection points at the moving averages and the rising trend line connecting the lows since mid-August.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Support at the 0.0160 level could be the line in the sand for a retracement, though, as a break below this could lead a reversal to happen.

RSI is heading lower, for now, to show that sellers have the upper hand while buyers take a break to book some profits. Stochastic is also heading south so Verge could follow suit until both oscillators hit oversold levels to reflect bearish exhaustion. Turning back up could bring buyers back in and allow the rally to resume.

If bulls are eager to return, the nearby Fib levels might be enough to keep losses at bay. The 38.2% level is at 0.0180 and the 50% level is around 0.0167, so there may be some buy orders waiting right here also.

1xBit, which is one of the most convenient and extensive sports-betting platforms, has added Verge’s XVG as an option on its list of available and accepting tokens, alongside BTC, LTC, DOGE, DASH, ETH, XMR, and more. This is in addition to the listing on Anycoin Direct, which also allows Verge to be traded against the euro.

To top that all off, XVG is now compatible with the Insight API used in the BitPay platform, which makes it more accessible to consumers and merchants also.

Images courtesy of TradingView.