Verge (XVG) Approaches Key Support — Bearish Pressure Still Strong

Key Takeaways

• Bearish continuation expected with Wave C completing near major support.
• 0.786 Fibonacci retracement holds significance and potential for a local bounce.
• RSI is near oversold levels, indicating a possible relief rally.

Verge (XVG) has been in a strong corrective phase after completing a larger-scale five-wave Elliott structure.

The daily chart highlights a significant decline, while the one-hour chart provides insights into short-term price movement.

A five-wave downward impulse within wave C is nearing completion. 

XVG Price Analysis

Verge (XVG) has completed a five-wave Elliott structure on the daily chart, followed by an ABC corrective pattern. The peak from Dec. 4, at  $0.021, marked Wave 5’s completion, after which price action declined sharply. 

The ABC correction appears to be nearing its end, with Wave C finding support near the 0.786 Fibonacci retracement at $0.0057.

A major confluence zone is forming in the highlighted green support area, which historically acted as a reversal region. If this level holds, the broader market trend suggests that a corrective bounce or trend reversal could emerge.

However, failure to sustain above this support could lead to further declines, possibly testing the Fibonacci retracement at $0.0016.

The Daily Relative Strength Index (RSI) hovers in the oversold region, indicating that bearish momentum may weaken. Historically, such RSI levels have led to relief rallies, though confirmation through price action is required. 

The immediate resistance to watch lies at the 0.618 retracement level ($0.0090), followed by key Fibonacci levels at $0.0113 and $0.0137. Breaking above these levels could confirm the end of the correction and a shift toward a new uptrend.

XVG Price Prediction

The 1-hour chart provides further clarity on the short-term outlook. The wave count suggests that Verge is in the final stages of an extended five-wave downward movement within Wave C. 

The sub-wave structure indicates that the market is currently in the final Wave (v), which aligns with the expected target range between $0.0058 (0.786 Fibonacci) and $0.0016.

If the price stabilizes above $0.0058, a short-term rebound could follow. The first potential target for a bounce lies at $0.0090, aligning with the 0.618 Fibonacci level. Any rally beyond this point would indicate a stronger recovery, potentially pushing toward $0.0113.

However, if bearish momentum continues, the price could extend toward the lower boundary of the green zone. The final support at $0.0016 represents the absolute bottom of the structure, but such a scenario would require a substantial breakdown below existing levels.

The 1-hour RSI remains oversold, suggesting that a temporary recovery is possible. However, confirmation of bullish momentum is required before considering long positions. If buyers step in at current levels, the price could consolidate before an eventual breakout attempt.

Key Levels to Watch

• Key Resistance: $0.0090 (0.618 Fibonacci retracement).
• Critical Resistance: $0.0113 (0.5 Fibonacci retracement).
• Immediate Support: $0.0058 (0.786 Fibonacci retracement).
• Critical Support: $0.0016 (1.0 Fibonacci retracement).
• Short-Term Target for Reversal: Above $0.0090 if a relief rally forms.
• Invalidation Zone: Below $0.0016, signaling deeper downside risk.

Overall, the current outlook remains bearish, with XVG nearing key support. If buyers step in at the highlighted zones, a relief rally could emerge, but a confirmed reversal is necessary before expecting a sustained recovery.