The VGX worth surged to the best level since July 18 because the bidding warfare for Voyager Digital continued. The token rose to a excessive of $0.6872, which was nearly 400% above the bottom degree this yr. Because of this, its whole market cap surged to over $182 million.
Why is Voyager Digital token rising?
Voyager Digital was a number one Canadian cryptocurrency trade that dealt with billions of {dollars} each week. The scenario modified just a few months in the past following the crash of Terra’s ecosystem, Celsius, and Three Arrow Capital.
Voyager Digital, dealing with a significant money squeeze, determined to file for voluntary chapter in a bid to arrange its sources. It additionally determined to cease deposits, withdrawals, and the creation of recent accounts. The VGX token continued buying and selling.
Behind the scenes, a bidding warfare by a few of the greatest firms within the crypto business like Coinbase, FTX, and Binance. In whole, there have been about 22 suitors for the corporate.
Now, the VGX token worth rose after it emerged that FTX and Binance have been the primary contenders. In line with Coindesk, Binance has moved aggressively to accumulate these property. FTX, which made a proposal to purchase the corporate final month, remains to be pursuing the corporate’s property.
Coinbase had partnered with Callaway Capital Administration to launch a bid however then walked away. Apart from, the corporate’s inventory worth has crashed arduous this yr.
Subsequently, the VGX worth is rising as traders deal with the way forward for Voyager now that it looks like it is going to be saved by a much bigger firm. The rise can be a part of a brief squeeze that has been happening previously few months.
VGX worth prediction
The four-hour chart exhibits that the Voyager Digital worth has been in a bearish pattern previously few weeks. On this interval, the coin fashioned a falling wedge sample, which is normally a bullish signal. This sample additionally explains why the coin has gone parabolic previously few days.
Voyager moved above the 25-day and 50-day transferring averages whereas the Relative Power Index (RSI) moved above the overbought degree. Subsequently, I think that the coin will now retreat as the keenness in regards to the firm’s acquisition fades. If this occurs, the subsequent key help at $0.3800.