In anticipation of a turnaround of parent company VGX, the token price went parabolic on Wednesday. It reached its highest level since June 23rd as Voyager Digital’s native token reached $0.5155. During the past 24 hours, Binance reports a surge of over 220%. From this year’s lowest point, it has also jumped by 240%.
Why is the VGX Price increasing?
Voyager Digital was one of the biggest cryptocurrency exchanges in the world. At its peak, the company used to handle volume worth billions of dollars every day. It had more than a million customers.
Recently, however, Voyager has had a spectacular fall from grace. The firm was recently forced to suspend withdrawals and deposit. It also voluntarily decided to file for bankruptcy protection.
The crisis happened because of the recent crash of Bitcoin and other cryptocurrency prices. Notably, the collapse of Terra and its ecosystem had a direct impact on the company. For example, it had extended funds to Three Arrows Capital, one of the hedge funds that lost money when Terra crashed.
Voyager Digital has also come into the spotlight now that regulators and law enforcement officials are investigating it. As such, most analysts believe that it will be impossible for the company to thrive as it used to before. Besides, it has lost the trust of most users.
The VGX token price is surging as investors react to a statement the company published on Tuesday. The company reiterated that it held about $1.3 billion of crypto assets on its platform. It also has claims against Three Arrows Capital. It also said that customers will be able to withdraw these funds when the reorganization plan ends.
Therefore, the VGX price is rising as investors cheer these events. Assets in trouble are also ripe for pump and dumpschemes. For example, we saw the Celsius token jump sharply even as the company’s challenges emerged. Hertz shares also jumped after the company went bankrupt.
VGX token price prediction
The four-hour chart shows that the Voyager Digital token price has been in a strong bullish trend in the past few hours. The coin managed to move above the descending trendline shown in blue. It also jumped above the 25-period and 50-period moving averages.
In my view, this is a dead cat bounce, meaning that the coin will see a major pullback in the next few days. If this happens, it will likely drop to the support at $0.15, which is about 70% below the current level.
