- VGX price has pulled back in the past few days.
- The coin could rebound sharply amid acquisition rumours.
VGX price pulled back on Wednesday as investors waited for new updates about Voyager Digital’s acquisition. The token slipped to a low of $0.566, which was lower than this week’s high of $1.183. This price is about 345% above the lowest level in July of this year.
Voyager Digital acquisition
Voyager Digital was a leading cryptocurrency exchange that enabled people to buy, store, and sell cryptocurrency. It was a rival to leading companies like Binance, Coinbase, and OKX.
Like other exchanges, Voyager Digital launched its own cryptocurrency known as VGX. The role of this token was to incentivise users to use its products. Holders had lower transaction costs and received rewards using the coin. Also, holders earn staking rewards.
The company became one of the biggest victims of the recent crash of cryptocurrencies like Bitcoin and Terra. It also became a key victim of the implosion of Three Arrows Capital.
Voyager Digital has been in bankruptcy proceedings in the past few months as the company attempts to reorganise its finances.
One way the company could come out of bankruptcy is through a buyout by a private equity firm or by another exchange. Recent reports suggest that companies like Binance and FTX have submitted bids worth about $50 million each to acquire the company.
Therefore, VGX price has risen because of the rising hopes that the company will be acquired. If this happens, holders will start getting rewards in the coming months. Still, it is worth noting that there is usually a disconnect between the financial performance of an exchange with that of its native token.
Another reason why Voyager Digital Token has rallied recently is that it is thinly traded. As such, it is prone to regular pump and dump schemes. Also, in the past few months, we have seen many bankrupt assets like stocks like Hertz and Revlon soar.
VGX price prediction
The four-hour chart shows that the VGX price has been in a bearish trend lately. As a result, it has gained by more than 300% from its lowest level this year. In the past few hours, the coin has pulled back to the 25-day and 50-day moving averages. The Stochastic Oscillator has moved close to the oversold level.
Therefore, there is a likelihood that the Voyager Digital Token will bounce back as buyers attempt to retest the key resistance level at $1.50. A drop below the support at $0.50 will invalidate the bearish view.
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