- The VGX crypto price went parabolic on Monday.
- Binance US agreed to buy Voyager Digital in a $1 billion deal.
VGX crypto price jumped sharply on Monday after the new agreement between Voyager Digital and Binance US. Voyager token has surged by more than 30% in the past 24 hours and moved to the highest level since December 6.
Voyager Digital and Binance deal
Voyager Digital, the bankrupt Canadian crypto exchange, agreed to be acquired by Binance US in a deal valued over $1 billion. The deal is made up of a fair market value of cryptocurrencies in Voyager’s accounts worth over $1.022 billion. Another part of the deal is $20 million of incremental value.
The deal comes a month after FTX filed for bankruptcy protection. FTX had initially agreed to buy Voyager Digital out of bankruptcy. Therefore, the VGX price rose as investors anticipate that Voyager will continue being a going concern, which will create value for the coin. Notably, the deal did not include the Three Arrows Capital debt.
At the time of writing, data compiled by CoinMarketCap estimated that the VGX token was still worth over $100 million. It is not uncommon for tokens of bankrupt companies to have millions of dollars in value. FTX Token is still worth over $400 million while Celsius Network has a market cap of over $122 million.
As such, there is always a discrepancy between the valuation of a crypto token and the company’s fundamentals. As such, this discrepancy makes it extremely difficult to come up with good valuation metrics of tokens like OKB and Huobi Token.
Another concern for the VGX price is whether Binance US will be able to finance the buyout. For one, Binance US has a relatively small market share in the US. Similarly, Binance has seen outflows worth over $7 billion in the past seven days. Binance US financial holdings are not well-known.
VGX crypto price forecast
The four-hour chart shows that the Voyager Token price found an important support at $0.282 on Monday and then popped. This was an important support level since it was the lowest level on November 16.
It rose after the buyout by Binance US. As it rose, it managed to move above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level. The same is true with other oscillators like Stochastic and the Commodity Channel Index (CCI).
Therefore, the VGX crypto price will likely resume the bearish trend as the bullish momentum fades and as investors embrace the new normal. If this happens, the next key support level to watch will be at $0.30.
