Introduction

Hey friends, hope you’re doing well! Welcome to the latest update on Verge (XVG). In previous updates, I’ve discussed how XVG first broke out of a significant falling wedge pattern on the 7-day time frame chart. After that, it formed another falling wedge on the daily time frame chart. Today, we’ll analyze the current price action following the breakout from this latest wedge pattern, and where XVG might be heading next.

Breakout from the Daily Time Frame Falling Wedge

Recently, XVG broke out of a falling wedge pattern that was more visible on the daily time frame. This is an important development, but the price was immediately rejected by a long-term resistance level of 0.045. Right now, XVG is retesting the previous resistance of this falling wedge, which is now acting as support.

Retesting the Resistance as Support

After breaking out from the falling wedge, the price quickly faced rejection at the $0.0045 resistance level, a significant hurdle that XVG must overcome to make further gains. Currently, the price is retesting the previous resistance of the wedge as support, which is a common move in technical patterns before a potential reversal to the upside.

In today's analysis, we’ll dive deeper into these price movements and what they mean for XVG’s potential next moves.

Analyzing the Daily Time Frame Chart

Since March 19, 2024, XVG has been trading within a falling wedge pattern. Here are some key points from this pattern:

• Multiple rejections: The price has faced several rejections and bounces within the wedge, including:
  • Bounces at the support levels
  • Rejections at the resistance lines

Eventually, after a series of rejections and bounces, XVG managed to break out from this wedge. However, after the breakout, the price was rejected by the long-term $0.0045 resistance level. It is now retesting the previous resistance of the wedge as a support zone, which might signal the beginning of a new bullish move.

Key Resistance at $0.0045: The Barrier to Watch

The 0.045 level is a crucial point of interest. On the weekly time frame, this level has acted as a strong resistance for several weeks. Previously, it was also a support zone. Breaking through this resistance will be essential for XVG to continue its upward trajectory. Historically, this level has served as a key area of resistance and support, dating back to August 2022.

If XVG successfully breaks above 0.045, it could trigger a significant rally toward its technical target.

Technical Target for the Breakout

If XVG can break through the 0.045 resistance, the next target is the top of the wedge, around 1 cent. At this level, we face another long-term resistance zone, which has previously acted as a resistance in multiple instances.

• Resistance at 1 cent: This level has been a strong resistance and support area multiple times in XVG’s price history, making it another significant hurdle. A breakout beyond 1 cent could signal a further price surge.

7-Day Time Frame: Long-Term Falling Wedge Breakout

On the 7-day time frame, XVG already broke out of a massive, long-term falling wedge pattern. Following this breakout, the price saw a 984% pump, but it hasn’t yet reached the full technical target of that wedge.

• Long-Term Target: The target for the long-term falling wedge breakout is around 10 cents, which represents a major upside from current levels. While XVG had a strong rally post-breakout, it still has room to run before hitting this target.

Conclusion

In summary, XVG has made a significant move by breaking out of a falling wedge pattern on the daily chart. However, it still faces the critical resistance level of $0.0045, which it must overcome to move higher. The next targets are 1 cent and the long-term target of 10 cents from the 7-day time frame breakout. Keep an eye on these levels for potential price action in the coming days.

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