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.

XRP Trading Now Available to Customers of Huobi Marketplace in USA and China

On Thursday (April 18), Huobi Marketplace (formerly known as "HBUS"), the cryptoasset exchange operated by San Francisco-based company HBUS Holdco, Inc. ("HBUS"), the exclusive U.S. partner of Singapore-based Huobi Global Limited (“Huobi Global”), announced that XRP trading had become available on Huobi.com.

The Huobi Marketplace originally went live under the "HBUS" brand on 10 July 2018. Initially, trading was only available in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Tether (USDT), Civic (CVC), Dash (DASH), and TrueUSD (TUSD). By 29 November 2018, 12 cryptoassets and 35 trading pairs were supported. 

Then, on January 11, HBUS published a blog post in which the company's CEO, Frank Fu, said that HBUS had "obtained exclusive rights to use the Huobi brand in the U.S." and changed the name of its marketplace (i.e. crypto trading platform) from HBUS to Huobi. HBUS also said that it had migrated "from its previous website (www.hbus.com) to the new domain at www.huobi.com."

In a press release issued on the same day, which was also posted to its blog, HBUS explained that it would continue to be "the company operating the U.S. trading platform," while Huobi Global, Huobi Group’s flagship digital asset exchange, would continue "to operate under its own name at hbg.com."

Here is how HBUS explained the advantages of this strategic partnership with Huobi Global:

"The exclusive licensing agreement and partnership gives HBUS a reputable brand to provide U.S. traders with localized trading experience. A closer relationship also means more technological support from Huobi Global for HBUS, which will provide advanced stability and security features."

Thursday's announcement by Huobi Marketplace informed customers that in order to provide them with "carefully vetted and high-quality trading options," it was adding support for XRP:

"Starting now, you can deposit XRP on the Huobi Marketplace, and the estimated opening time for XRP trading and withdrawals will be April 19th, 2019 at 12:00AM PST. Supported XRP trading pairs include XRP/USD, XRP/BTC and XRP/USDT."

 

Featured Image Courtesy of HBUS