VeChain Price Prediction: Will the third bounce restart the rally?
|- VeChain price has risen 4% after falling 12% from the year-to-date high.
- Currently, VET is showing potential for a 16% downswing in the short term.
- The bearish thesis would be invalidated from a breach above $0.026.
VeChain price is displaying auction market behavior that should be closely watched. Key levels have been identified to determine when VET may create a profitable trading opportunity.
Vechain price is setting up a move
VeChain price is attempting to change the bearish narrative that has recently entered the market. On February 14, the digital currency token was up 4%. Earlier this month, the bears produced a bearish candle beneath the 8-day exponential moving average and 21-day simple moving average. The bulls have failed to retake the barrier during two previous counter-trend attempts.
VeChain is currently trading at $0.023, the third time in less than a week that the bulls are engaging with the $0.024 level where the moving averages are resting. There is a potential that the bulls will reclaim the boundary, but the barrier is currently acting as resistance. If this remains, it could lead to another 12% downswing, targeting $0.020 in the short term. This downswing move would challenge the support near the ascending trend line that catalyzed VET's 75% winter rally.
Invalidation of the bearish thesis would occur if the bulls can reclaim the $0.028 level. Not only will they have to breach the level, but they should also produce a daily candlestick close above the barrier to confirm that the downtrend is over. If this happens, the bulls could reestablish the liquidity hunt towards the $0.028 level, resulting in a 20% increase from VeChain's current price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.