The VGX crypto price has slumped hard as concerns about the parent company remain. Voyager token is trading at $0.2617, which is the lowest it has ever been. This price is about 95% below the all-time high, bringing its total market cap to over $76 million.
Why is Voyager crashing?
Voyager Digital has made headlines recently amid the ongoing crash of cryptocurrencies. Precisely, the company has been in the spotlight because of its association with Three Arrows Capital, a crypto hedge fund that has collapsed.
In June, the company announced that it was implementing a margin call on trades executed by the hedge fund. It had lent over $650 million to Three Arrows. The fund had invested heavily in LUNA, the coin that crashed to zero in May of this year. It also had major positions in coins like Bitcoin and Ethereum.
The VGX price is now crashing after Voyager announced that it was suspending withdrawals and deposits. The goal for this pause is to let the company seek additional liquidity as it explores strategic alternatives.
Therefore, the Voyager price is crashing as investors remain concerned about the future of the company. Celsius, the parent company of CEL token, is exploring options while BlockFi was recently acquired by FTX.
In theory, VGX should continue falling in the coming weeks. However, in the past, we have seen the opposite happen across assets. For example, CEL price recently surged even after the company paused withdrawals and deposits. Similarly, Revlon’s stock price rose after the firm filed for bankruptcy.
VGX price prediction
The daily chart shows that the VGX crypto price has been in a strong bearish trend in the past few months as digital coins crash. The coin recently crossed the important support level at $0.5630, which was the previous all-time low.
VGX remains below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the oversold level. Therefore, the overall trend for Voyager’s governance token is bearish although a brief dead cat bounce cannot be ruled out. If this happens, the coin will likely retest the important resistance at $0.56.