XVGUSD breaks above 100-day moving average for the first time since August 31st
Verge/US Dollar Index (XVGUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
XVGUSD finished Saturday at 0.00492 surging $0.00072 (17.14%). This is the biggest single-day gain in over four months. The last time we've seen such an unusually strong single-day gain on November 1st, XVGUSD actually lost -7.50% on the following trading day. Today's close at 0.00492 marks the highest recorded closing price since September 12th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00455, the cryptocurrency confirmed its breakout through the previous session high after trading up to $0.00062 above it intraday.
Daily Candlestick Chart (XVGUSD as at Nov 21, 2020):
Saturday's trading range has been $0.00098 (23.33%), that's far above the last trading month's daily average range of $0.00041. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XVGUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
XVG/USD managed to close above the 100-day moving average at 0.00487 for the first time since August 31st. Unable to break through the key technical resistance level at 0.00501 (R1), XVG closed below it after spiking up to 0.00517 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. Verge found buyers again today around 0.00419 for the third trading day in a row after having found demand at 0.00420 in the previous session and at 0.00425 two days ago.
Crossing above the upper Bollinger Band for the first time since October 22nd, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.00428 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 17 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XVG/USD. Out of 138 times, XVGUSD closed lower 61.59% 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 three trading days, showing a win rate of 60.87% with an average market move of -1.71%.