XVG Analysis by Request - Don't panic! There's time... to exit!
Got a request for XVG analysis, and here is what I think...
First of all, this coin has already had a significant increase in price. It close to its old highs
It may very well have completed a 12345 Elliot wave , identified in blue. This would suggest an ABC correction to follow. We have not made a double top either, which could be a likely scenario, and a good exit.
Current price action will become more clear if / when price revisits the recent high. Then we will get a better picture of our next move. I took the liberty of drawing out a few possible scenarios. I believe the most likely is the scenario is a a failed retest of the high (double top), and then a correction to a certain fib level, most likely in the ABC format.
If you are still HODLing verge, I would set a stop loss a percent below the blue support, and wait for a better exit.
Honestly, even if this coin does have a little more to go (I identified a price target by the horizontal support, around 1600 sats), is it really worth it? Try and figure out your Risk / Reward ratio, which is the total potential risk to the total potential gain. Is it 1:3 or greater? I can tell you that there are numerous coins with a great Risk / Reward ratio. But then again, this all depends on how high you believe XVG can go near-term.
Do what you will, but personally I would try and look for a coin with more upwards potential, Verge already moved a lot. If you bought now, it is very possible you would be "buying the high", only to find yourself "selling the low" later.
We'll see how it plays out.
Happy trading! :)
First of all, this coin has already had a significant increase in price. It close to its old highs
It may very well have completed a 12345 Elliot wave , identified in blue. This would suggest an ABC correction to follow. We have not made a double top either, which could be a likely scenario, and a good exit.
Current price action will become more clear if / when price revisits the recent high. Then we will get a better picture of our next move. I took the liberty of drawing out a few possible scenarios. I believe the most likely is the scenario is a a failed retest of the high (double top), and then a correction to a certain fib level, most likely in the ABC format.
If you are still HODLing verge, I would set a stop loss a percent below the blue support, and wait for a better exit.
Honestly, even if this coin does have a little more to go (I identified a price target by the horizontal support, around 1600 sats), is it really worth it? Try and figure out your Risk / Reward ratio, which is the total potential risk to the total potential gain. Is it 1:3 or greater? I can tell you that there are numerous coins with a great Risk / Reward ratio. But then again, this all depends on how high you believe XVG can go near-term.
Do what you will, but personally I would try and look for a coin with more upwards potential, Verge already moved a lot. If you bought now, it is very possible you would be "buying the high", only to find yourself "selling the low" later.
We'll see how it plays out.
Happy trading! :)
Komen:
Also, know that my arrows showing possible scenarios aren't made to follow the time at the bottom very well. Just over a reasonable period of time, that is where the trend should be. Price may very well follow orange's trajectory initially, only to fall into the Blue's correction path. Each time a support breaks, prepare to go down to the next one. This can happen to any support level if there's enough sell pressure, so best to keep a close eye.
Komen:
The support around 945 sats is the level to watch right now. If we continue the trend and test it, it will give us a clue if price will rally higher or break low.
If we don't test the support, wait until we test the resistance
If we don't test the support, wait until we test the resistance