VGX price has done in the past few months as Voyager Digital’s bankruptcy proceedings continue. The token rose to a high of $0.9388, which was the highest level since July 13. It has jumped by more than 538% from the lowest level this year, giving it a market cap of over $262 million.
Why is Voyager Digital coin rising?
Voyager Digital was one of the biggest companies in the cryptocurrency industry. The Canadian company offered cryptocurrency trading and investing solutions to millions of people during its peak. At the time, it used to handle transactions worth billions of dollars every week.VGX is the native governance token for the platform.
Voyager filed for voluntary bankruptcy proceedings in its bid to restructure debts worth billions of dollars. As it does this, the firm has announced that it will stop receiving deposits and process withdrawals from its customers.
Still, despite this crisis, the VGX price has continued rising and even outperforming many cryptocurrencies like Bitcoin and Ethereum.
There are two possible reasons for this. First, there is growing hope that Voyager Digital asset’s will soon be acquired. According to media reports, companies like FTX and Binance are currently negotiating to acquire the firm. If this happens, the potential acquirer will likely have the resources to make it vibrant again.
Second, the VGX price has risen because of a scenario that has become popular recently. We have seen share prices of troubled companies soar. For example, Revlon shares have jumped by more than 57% in the past three months despite the fact that the company has filed for bankruptcy protection.
Similarly, shares of companies like Hertz soared after initiating bankruptcy proceedings. In cryptocurrencies, Celsius’s CEL token jumped after the platform went out of business.
VGX price prediction
The daily chart shows that the Voyager Digital token has been in a strong bullish trend in the past few weeks. During this time, it has jumped above the 25-day and 50-day moving averages. It has also moved above the important resistance level at $0.7391, which was the highest point on August 26.
The Awesome Oscillator has jumped above the neutral point. Therefore, the coin will likely continue rising as bulls target the next key resistance level at $1.4, which was the highest point on July 13. A drop below the support at $0.70 will invalidate the bullish view.