XVGUSD climbs to highest close since February 25th
Verge/US Dollar Index (XVGUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XVGUSD finished Saturday at 0.00395 gaining $0.00019 (5.05%). Today's close at 0.00395 marks the highest recorded closing price since February 25th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00394, XVG/USD confirmed its breakout through the prior session high after trading up to $0.00001 above it intraday.
Daily Candlestick Chart (XVGUSD as at May 23, 2020):
Saturday's trading range has been $0.00028 (7.45%), that's slightly below the last trading month's daily average range of $0.00033. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XVGUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 0.00403 (R1). After having been unable to move above 0.00394 in the previous session, XVG ran into sellers again around the same price level today, failing to move higher than 0.00395.
Crossing above the upper Bollinger Band for the first time since May 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.00345 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on May 6th, XVGUSD gained 6.44% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XVG/USD. Out of 50 times, XVGUSD closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 62.00% with an average market move of 0.94%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGBTC closing 4.88% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more