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Voyager Digital token went vertical on Monday as demand for the crypto token rose. It jumped by more than 50% and soared to the highest level since September 30th of this year. VGX has surged by over 112% from the lowest point in 2023.
Why is the VGX price soaring?
Voyager Digital was once one of the biggest crypto exchanges in the world. It had billions of dollars worth of client assets and millions of customers from around the world.
Voyager became one of the top casualties of the collapse of Terra and its ecosystem. Following Terra’s collapse, the company, including other firms like Celsius Network and Three Arrow Capital also went bankrupt.
Voyager Digital was then acquired by FTX in bankruptcy proceedings. However, the acquisition was not finalized when FTX collapsed in October.
Now, the company is in the process of being acquired by Binance for $1 billion. Binance is the biggest company in the crypto industry as measured by its number of clients and amount of money in its ecosystem. Some authorities, especially in the US, have expressed concerns for Binance’s acquisition of the company.
It is not clear why the VGX token price is soaring. A likely reason is that investors expect some major news from the company and its regulators. Another possible reason is that this is simply a short squeeze, which happens when investors push an asset’s price higher with the goal of punishing short-sellers.
Voyager Digital crypto price prediction
The 4H chart shows that the VGX crypto price went parabolic on Monday as a short squeeze happened. As it jumped, the token managed to move above the important resistance level at $0.4851, the highest point on January 16 and December 3.
The coin moved above the neckline of the inverted head and shoulders pattern that has been forming in the past few weeks. It has also risen above the 25-day and 50-day moving averages. The token has moved above the overbought level. Therefore, the coin will likely retreat as sellers target the next key support level at $0.50.
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