Skip to main content

On 17 April 2018 Pornhub announced its partnership with Verge to start accepting cryptocurrency payments. By the time the news was released the Verge price had increased 500% in approximately one month from a $0.023 low to a $0.118 top. Verge price made a thrust higher in the last hours preceding the announcement to precipitately retreat and retrace approximately 50% of the previous advance. This is a typical ‘buy the rumor, sell the news’ situation: by mid of March the Verge price was massively oversold (RSI indicator) and a positive divergence on the MACD received confirmation by a cross-over signal (circled) combined with a lower candle wick (circled as well). This was a clear buy-signal that could have been spotted by technical analysis (and certainly some analysts out there and automatic trading systems as well did spot it) but it is also certain that insiders aware about the coming partnership have bought XVG in anticipation of the news (buy the rumor effect) setting the stage for the positive technical set-up and the subsequent price progression. At the time of the announcement speculators bought in while the initial buyers were liquidating their positions (sell the news event) by selling to bigger fools and the subsequent retreat resulted in the last buyers selling in a panic. Now that the news has been digested and the Pornhub partnership is one of a kind practical use case for the Verge cryptocurrency we expect it will stabilize above the $0.6 level before resuming its advance.

No Comments Yet

Leave a Reply

Your email address will not be published. Required fields are marked * logo

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: