VGX price prediction as Voyager Digital stages a comeback
Voyager Digital price made a strong recovery in the past few days amid rising expectations that the company will soon be acquired out of bankruptcy. The VGX token rose to a high of $0.7785, which was the highest level since September 16. It has risen by more than 30% from its lowest level last week.
Voyager Digital to be acquired
Voyager Digital was a leading Canadian cryptocurrency exchange that served thousands of people internationally. The company became one of the biggest victims of the recent cryptocurrency crash as it was forced to file for bankruptcy a few months ago.
Voyager Digital has been in court as the management attempts to restructure its finances. As such, there is a growing sense of expectation that the company will soon be acquired at a throw-away price. The leading potential acquirers are FTX and Wave Finance.
Last week, it emerged that FTX had taken a pole position in acquiring the company. According to court filings, its bid has been higher than that of Wave Finance. FTX has been raising capital from investors to aid a potential acquisition.
The most recent update was that Voyager Digital asked the bankruptcy court in New York to unwind a loan it made to Alameda Research. The loan was mostly dominated in cryptocurrencies like BTC, USDC, and ether.
The new development is notable since Alameda and FTX have similar ownership. Sam Bankman-Fried is a major shareholder in the two companies.
Therefore, the VGX price has risen as investors anticipate that Voyager Digital will resume operations soon. Still, it is too early to determine whether the company will be acquired. And if it does, it is unclear what the new owners will do with the VGX token.
It is also worth noting that there is a disconnect between Voyager Digital’s fundamentals and that of the VGX token.
VGX price prediction
The four-hour chart shows that the VGX token price has been in a bearish trend in the past few days. It has fallen by more than 50% from the highest level this year. The coin formed a downward trend that is shown in black. It has moved to the 25-day and 50-day moving averages and the 50% Fibonacci Retracement level.
Therefore, there is a likelihood that it will move to the lower side of the descending channel at $0.550. A move above the resistance level at $0.7500 will invalidate the bearish view.