Since June 15, the price of Verge (XVG) has experienced an extraordinary rise of nearly 600%. This increase gained further traction on July 3, reaching a new annual peak. At present, the XVG price is hovering around a crucial horizontal resistance level that is significant for both short and long-term trading perspectives. The future trajectory of XVG will largely depend on whether it can break through this resistance or if it will face a setback.
### Verge Records Consecutive Bullish Weeks
An analysis of XVG’s weekly technical indicators reveals a promising outlook for the cryptocurrency. At the beginning of June, XVG seemed to dip below the $0.0018 support threshold, a critical level that had been established since May 2017. This initial breakdown was interpreted as a bearish sign, suggesting a potential price drop. However, this turn was not indicative of a true market shift. The XVG price quickly reversed course (illustrated by a green circle) and produced a series of bullish weekly candlesticks. The bullish momentum has intensified over the past two weeks, leading to a remarkable 600% price surge. Moreover, in early July, XVG broke free from a descending resistance line that had been in place for 784 days. This breakout, along with a deviation from the previous trend and subsequent recovery, confirmed the beginning of a bullish trend reversal for XVG.
### Current Market Sentiment and RSI Analysis
Additionally, the weekly Relative Strength Index (RSI) further supports the ongoing bullish trend. The RSI is a widely used metric among traders to evaluate whether an asset is overbought or oversold, helping to inform buying or selling decisions. An RSI reading above 50 that is on the rise indicates that bullish sentiment prevails. Conversely, readings below 50 often suggest bearish sentiment. Presently, the RSI for XVG is positioned above 50 and is trending upwards, signaling a positive market sentiment and hinting at a continuation of the price increase.
### XVG Price Forecast: Can the 600% Surge Be Maintained?
Examining the daily time frame, it becomes evident that the XVG price has surged nearly 600% since it hit its annual low on June 16. This performance has outpaced the broader cryptocurrency market, particularly with a sharp increase noted on July 2 and 3. Currently, XVG is trading near the $0.0090 resistance level, a key point for both short and long-term traders. If the price breaks above this resistance, it could potentially lead to a tenfold increase, targeting around $0.0900. However, it is essential to recognize that during earlier breakout attempts, the Verge price faced rejections, which resulted in several long upper wicks (marked by red icons). If this rejection continues at the $0.0046 level, XVG may retreat toward the 0.618 Fibonacci retracement support level.
### Conclusion: Uncertain Future for XVG
In summary, the future direction of XVG remains uncertain. Its trajectory depends on whether the price can decisively break through the $0.0090 resistance or if it will encounter further rejections. A successful breakout could initiate a significant rally toward $0.0900, while ongoing rejection may suggest a short-term retracement toward $0.0046.
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