Verge (XVG): Fundamental and Technical Price Analysis ahead of the Announcement

  • Expect high volatility and volume
  • Expect a significant selloff if the announcement is not “largest cryptocurrency collaboration to hit the market"
  • Price has recently broken the Bollinger Bands 13 and is considered overbought
  • Price is above the SMA 20

Verge XVG CryptoCompare Chart

There has been a great deal of excitement regarding the upcoming Verge announcement, which is scheduled for 10AM EST today. Since the announcement of the partnership in mid-March the price has risen 300% which is particularly notable considering the relatively poor performance across crypto markets in the same time period.

The performance of Verge and the announcements from the team are causing excitement, scepticism and a little confusion. Most are interested in how this announcement will affect the price of Verge (XVG).

Fundamentals

The first chart has highlighted the key fundamental news that has impacted the price of Verge over the past 3 months. It is clear to see that the announcements have been correlated to strong price swings.

The main question is whether the market has any more appetite for an upside move on what will be the 4th major announcement in the last 2 months. The chances of whales selling into the masses of traders that are expecting good news is high. It is reasonable to expect a sharp and brutal sell-off, unless the announcement really is the "largest cryptocurrency collaboration to hit the market".

Buy The Rumour Sell The News

The old adage of ‘buying the rumour and selling the news’ certainly applies to the cryptocurrency market and may well apply later today.

On a large scale the CBOE and CME bitcoin futures are good examples of this as they coalesced strikingly well with the peak of bitcoin in Decemember. On a smaller scale it applies to forking events which can significantly impact the price of relatively obscure coins such as Zclassic (ZCL) as investors hope to claim ‘free coins’. No prizes for guessing when the ZCL airdrop was announced and when it was claimed…

ZClassic ZCL CryptoCompare Chart

Technicals

Looking at the daily chart the volume has increased significantly since last night in anticipation of the announcement. 

  • Price is up 25% in the past 24 hours and 60% in the past 2 weeks
  • On the 3-month chart price has broken the bounds of the Bollinger Bands 13 
  • On the 3-month chart considered overbought looking at the RSI 21
  • On the 3-month chart price has extended above the SMA 13 suggesting a correction is due

Verge XVG CryptoCompare Chart

Summary

On balance the risk of disappointing news and poor technicals makes a long position unappealing. Expect high volatility and volume in the coming 24 hours. CryptoGlobe will cover the announcement later today.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

First Stablecoin Trading Pair Goes Live on Binance DEX

Venture capital backed blockchain startup Stably, the issuer of USDSB, the first stablecoin to be launched on Binance Chain, has announced that a trading pair for USDSB is going live on Binance DEX today (June 24).

Seattle-based Stably was co-founded by Kory Hoang (Chief Executive Officer), a former Private Equity Data Analyst for PitchBook, David Zhang (Chief Technology Officer, who used to be a Software Development Engineer at Amazon, Amiya Diwan (Chief Product Officer), also a former Software Development Engineer at Amazon, and Bryan Guy (Chief Legal Officer), who is a licensed attorney.

Stably announced on 1 November 2018 the early access launch of its pegged and fully dollar-collateralized stablecoin, StableUSD (USDS), which had first been launched on the Ethereum mainnet on 16 August 2018. Stably said at the time that the fiat reserves were held in FDIC-insured escrow accounts managed by custodian Prime Trust, and that a leading accounting firm, Cohen & Co., would be conducting weekly attestations for these fiat reserves. 

Then, on 1 February 2019, USDS got listed on Binance's centralized exchange (Binance.com), and two trading pairs for it—BNB/USDS and BTC/USDS—went live on 5 February 2018.

Later that month, trading pairs to support trading USDS against four other stablecoins—USDT, USDC, PAX, and TUSD—became available on Binance.com.

On March 18, Stably said that USD had received support from Binance's over-the-counter (OTC) desk. Kory Hoang, the Stably CEO, had this to say at the time:

“Partnering with Binance OTC allows us to provide even more liquidity to trading shops who want to move large amounts between major cryptocurrencies and USDS."

In a blog post published on June 3, Stably announced it was going to issue StableUSD on Binance Chain, and that USDSB, a BEP-2 token, would become the first stablecoin on Binance Chain. Mahraan Qadir, Director of Product Management at Stably, went on to say:

Building on Binance Chain provides many benefits for stablecoin users, such as improved security, ease of use, and speed of transaction. This makes USDSB one of the fastest major stablecoins on the market, with one-second block confirmation time and the ability to process several thousands of transactions per second."

He also said:

Expanding onto Binance Chain will also allow the Stably team to eventually submit a proposal to list USDSB on Binance DEX, an initiative that we are planning to achieve in the coming weeks. If it is approved by the validators and gets listed, USDSB will become the first stablecoin to launch on Binance DEX..."

Well, now, three weeks later, we find out via another blog post by Qadir that USDSB has indeed been listed on Binance DEX and that trading pair BNB/USDSB is going live today on Binance DEX (expected to happen aat 10:00 UTC). Furthermore, he says that Stably is "planning to list USDSB with additional assets on Binance DEX very soon."

Also, according to Qadir, today, two trading pairs for USDSB are being launched on Binance.com: USDSB/USDT and USDSB/USDS.

Featured Image Courtesy of Binance