- VeChain uptrend is still in jeopardy, especially with overhead pressure surging under the 100 SMA.
- If descending parallel channel’s middle-boundary support is shattered, a breakdown will likely extend to $0.024.
- VET opportunity to avert the breakdown lies with defending support at the 50 SMA and the 100 SMA.
VeChain has generally sustained a downtrend for over two weeks and there is no sign of recovery. Its upside seems strongly barricaded, limiting price movement. On the downside, bulls are in the middle of a fierce fight to secure higher support. However, a massive breakdown still looms in the direction of $0.024.
VeChain is on the verge of another breakdown
The VET 4-hour chart brings to light the formation of a descending parallel channel. This pattern began forming after VeChain hit a barrier at $0.035 in January. Recovery attempts have been rendered unsuccessful, with losses testing $0.024.
For instance, the most recent attempt to reverse the trend lost steam at the 100 Simple Moving Average, a resistance reinforced by the channel’s upper boundary. Currently, a retreat is underway with VET struggling to balance at the 50 SMA and 200 SMA confluence.
Realize that losing control over this support will put more pressure on the ascending parallel channel’s middle boundary. Besides, if VeChain slices through this critical zone, a massive breakdown would ensue. Support at $0.024 may come in handy to stop the losses, but VET’s downtrend could be unstoppable until it meets the buyer congestion area at $0.02.
VET/USD 4-hour chart
The Moving Average Convergence Divergence or MACD on the same 4-hour chart emphasizes the bearish outlook. While the MACD (blue line) is in the positive region, it is about to cross under the signal line, a bearish signal and a call to sell. Moreover, the Relative Strength Index shows that selling pressure is getting stronger.
Looking at the other side of the fence
VeChain has a couple of key areas to hold onto to avert the potential breakdown and these are the ascending parallel channel’s middle boundary and the confluence formed by the 50 SMA and the 200 SMA.
Another bullish signal would be making a daily close above the 100 SMA. Such price action may trigger more orders to create enough tailwind behind VET for gains toward $0.035.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.