You Ask, We Analyze: Why Voyager Digital's Stock May Be Set To Reverse Course Despite Bitcoin, Ethereum Slump

On Thursday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Friday. From the replies Benzinga selected one ticker for technical analysis.

@Ehrls15, @VillagePirate, @taidarsonics, @FuturePurfect and @ekfpromo are buying Voyager Digital, Ltd. VYGVF.

@Rghj21 commented “you can buy now while it’s undervalued or wait and pay a lot more.” The trader believes Voyager should be trading alongside Coinbase Global, Inc COIN. @VillagePirate responded to say Voyager has “awesome product growth for 2022.”

On Feb. 14, the cryptocurrency trading platform and brokerage is expected to print its fourth-quarter 2021 earnings results and the estimates Voyager gave on Jan. 5 indicate the company will show massive growth. Voyager anticipates its fourth-quarter revenue to come in at $165 million compared to just $3.6 million for the same period the year prior.

Over the course of 2021, Voyager increased its total funded user accounts from 43,000 on Dec. 31, 2020. to 1.075 million as of Dec. 31, 2021.

Voyager plans to use the enhancements it made to its platform and technological capabilities in 2021 to continue to scale its user base in 2022.

“We expect to continue to grow our team in 2022 as we expand into NFT’s, the Metaverse, and our own custody solution. Also, we look forward to beginning our rollout in Europe and Canada, launching our debit card, and adding credit products and equity trading,” said Voyager CEO Steve Ehrlich.

The stock has been heavily pressured by the sliding cryptocurrency market led by Bitcoin BTC/USD and Ethereum ETH/USD, which have lost about 38% and 33%, respectively, since reaching all-time highs on Nov. 10. Voyager topped out the day prior, on Nov. 9 at the $20.97 mark and is now trading over 50% lower. If the company is able to pull through and print blow-out earnings come February, however, Voyager may be able to defy the general crypto slump.

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The Voyager Chart: The steep downtrend may be set to change if Voyager can show it has reacted to the bullish double bottom pattern the stock printed on Jan. 10 and Jan. 11. Although Voyager shot up about 20% off the double bottom low at $9.54 on both Wednesday and Thursday, it has rejected a resistance level at $11.50 on each day and dropped lower.

• If Voyager is able to hold above the $9.54 level, the stock may print a higher low, which would indicate a reversal to the upside may be in the cards.
• If Voyager is set to reverse into an uptrend it will need to shoot up and print a higher high above $11.57 over the next few trading days.
• Voyager’s relative strength index is measuring in at about 37%, which indicates the stock is nearing oversold territory.
• The stock is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day. Bullish traders would likely feel more confident if Voyager was able to regain support of the eight-day EMA.
• Voyager has resistance above at $11.51 and $13 and support below at $10 and $8.64.