Indecision with XVG - A Continuation Pattern Emerging?
A lot has been written about XVG in these past few weeks, with many being hopeful. This led only to disappointment as the XVG continued to show poor performance. Most original Technical Analysis charts (including my own) indicated what appeared to be strong evidence for a symmetrical triangle. This suggested a quick price breakout in the positive direction for another strong impulse wave. Conservative targets for the currency suggested a price around $0.50, while more aggressive values were upwards of $0.70 for the near term.
Whats going on with XVG?
XVG appears to be in a deep continuation pattern (rectangle). Strong support is shown around $0.135 and strong resistance around $0.250. Over the past two weeks, the price has oscillated wildly between these two points, forming a rectangle pattern. Despite this, there has been a fairly consistent decrease in volume traded for the currency suggesting that some kind of breakout is occurring in the near future. The MACD for the currency is beginning to roll upwards, suggesting that the price could break positive as the crypto market cap grows off yesterday's flash crash to 0.650G$. Additionally, the MACD roll as well as low trade volume could potentially indicate an oversold condition. In other words, a decision is on the horizon.
Look for a breakout at $0.25, and then at $0.30. If these targets are met, then XVG will likely test new highs at $0.50. However, it is important to bear in mind that the rectangle patterns can indicate reversal such that the price could just as well break downwards. If this occurs, then expect resistance at around $0.09. While, this is not my primary count due to MACD and volume, I would like to cite this as a possibility.
Confidence 3.0/5.0
Keep it real
@mxcrypt
Note
These solely my own ideas. This is by no means professional financial advice and I cannot be held accountable for any investment decisions undertaken by reading this article.
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