- Verge (XVG) is in a steady uptrend since July 20.
- An upcoming Golden Cross setup could boost XVGUSD prices much higher.
- XVG markets could also rise substantially due to Verge’s impending halving
JAIPUR (Coinchapter.com) – Verge (XVG) resumed its uptrend on Friday but could head much higher on the back of an upcoming bullish technical setup and a crucial fundamental development.
In detail, the XVGUSD pair’s 50-day exponential moving average (50 EMA; the red wave) anticipates crossing above its 200-day exponential moving average (200 EMA; the black wave) to confirm a Golden Cross. Market participants consider golden crosses as bullish indicators.
XVG’s last golden cross formation in November 2020 led the privacy cryptocurrency to rally 92% from $0.0065 to its all-time highs around $0.0845 this year, before an 80% crash that sent prices down to $0.017.
Traders assessed XVG’s impending golden cross occurrence and placed buy bids in hopes of securing profits off the technical setup. The bullish pressure led to Verge’s native blockchain asset closing above $0.033, which served as a crucial resistance and suppressed recoveries post the May crash.
After a 2-month bearish phase, XVGUSD rose from $0.015 to $0.035. A successful golden cross could propel the pair beyond $0.044 and confirm the beginning of the next leg of XVG’s upside run. But it would take more than just a bullish technical development for Verge prices to rally higher.
Verge has halving events pre-programmed in its code.
Satoshi Nakamoto pioneered halving while first unveiling Bitcoin. It involves the reduction of block rewards by 50%, thereby causing a supply drop and raising the deflationary quotient of the currency. Block rewards are incentives that miners receive for keeping the blockchain active and secure in proof-of-work cryptocurrency systems.
But unlike Bitcoin, Verge’s block rewards get halved much more frequently due to faster block times (read 34 seconds). The last Verge halving took place in January 2021. Then miners received 100 XVG tokens for their contribution. They will now receive 50 Verge coins after the upcoming halving, which will occur in the next six days.
Golden cross combined with halving spurred XVG spot rates to print a near 100% rally in the first half of 2021. A similar bullish scenario is brewing up again. But how high will XVG go this time? That remains to be seen.