XVGUSD closes above its opening price after recovering from early selling pressure
Verge/US Dollar Index (XVGUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
XVGUSD ended Saturday at 0.00432 gaining $0.00002 (0.47%) on low volume. Trading up to $0.00009 lower after the open, Verge managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XVGUSD as at Oct 17, 2020):
Saturday's trading range has been $0.00022 (5.12%), that's slightly below the last trading month's daily average range of $0.00027. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on September 22nd, XVGUSD actually lost -5.23% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
After having been unable to move lower than 0.00419 in the prior session, XVG/USD found buyers again around the same price level today at 0.00421.
While XVG is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 0.00419 where further sell stops might get triggered. As prices are trading close to October's low at 0.00384, downside momentum could accelerate should the cryptocurrency mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for XVG/USD. Out of 13 times, XVGUSD closed higher 53.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 61.54% with an average market move of 2.73%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more