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Verge (XVGBTC) ready for a bullish move?

A price channel, exponential moving averages and the relative strength index (RSI) labeled 1,2, and 3 respectively on the chart are used in this analysis to comment on the price action of Verge (XVGBTC) since its inception using a 4 hour timeframe chart. These are discussed below in an ascending order.

Technical analysis of Verge

(1) The bearish price channel paints a very clear picture for Verge (XVGBTC) with bears overwhelming XVGBTC bulls. June 18, 2018 marks a breakout of this bearish channel at ~0.00000414 as indicated on the chart which implies a possible move to the upside in price action.

(2) The 40 (blue color) and 20 (green color) exponential moving averages (EMA) are employed in this analysis and also indicate a seller’s market for Verge (XVGBTC). Use of the 40 and 20 period for the exponential moving averages in this analysis was based on preference as long as the rules and implications of using moving averages were clearly understood.

Price action at the point of breakout above the channel currently sits below both exponential moving averages. The slope of a moving average is one of its most powerful use in trend analysis. The current flat (zero) slope of both EMA’s indicates a consolidation in the price of Verge (XVGBTC). A trend to the upside or downside should follow after the end of price consolidation. A great confirmation of an uptrend for example would be to see both EMA’s move upwards with a positive slope.

(3) The relative strength index (RSI) as shown here is plotted with a black trendline and a dark blue trendline. The former shows a negative descending slope which implies that bearish momentum is dominant. The latter oppositely indicates a positive rising slope which suggests that Verge (XVGBTC) bulls probably will try and drive prices higher?

Above all, it is best to be patient to see which way price action resolves next and also have different independent technical tools confirm price movement (trend) before taking any position (long or short).

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