The VGX price plunged to the lowest level since August as the plot thickened for Voyager Token. It plunged to a low of $0.2715, which was much lower than September’s high of $1.1957. The coin has slipped by more than 95% from its all-time high.
Voyager Digital and FTX deal
VGX is the native token for Voyager Digital’s ecosystem. For starters, Voyager is a Canadian exchange that collapsed following the collapse of Terra and Three Arrow Capital. After filing for bankruptcy, the company agreed to be acquired by FTX, one of the leading players in the industry.
As part of the deal, FTX would help to capitalize the company and boost its liquidity. Therefore, Voyager Digital’s customers were relieved that they would receive their locked funds. This was notable since FTX is a leading exchange valued at over $32 billion. It has transformed itself into the industry’s biggest and most stable exchanges.
Now, however, the plot has thickened and it is unclear how Voyager Digital will survive. On Tuesday, FTX reached out to Binance as it suffered a bank run. As such, there is a possibility that the company will be bought in a fire sale once Binance concludes its due diligence.
It is unclear whether Binance will also have an interest in acquiring Voyager Digital. Most importantly, it is unclear whether the VGX token will have demand now that investors are worried about the safety of these tokens. In FTX’s agreement to acquire Voyager, a clause mentioned that VGX could become worthless.
VGX price forecast
The daily chart shows that the Voyager crypto has been in a strong bearish trend in the past few weeks. It crashed to a low of $0.2826, the lowest level since August 25. The coin has crashed below all moving averages while the Stochastic Oscillator has moved below the oversold level.
VGX’s Relative Strength Index and other oscillators have also dropped. Therefore, the coin will likely continue falling as sellers target the next key support at $0.200. A move above the resistance at $0.35 will invalidate the bearish view.