• VeChain price is struggling to overcome the Anchored VWAP at $0.087 that began on January 3, 2021.
  • VET came close to activating the double bottom on August 1.
  • The six-hour chart reveals a Golden Cross is fast approaching, suggesting higher prices.

VeChain price has built on the rebound from the 50-week SMA, registering a 15.21% gain last week and closing July with a minor decline of -1.64%. The persistence of the Anchored VWAP has been containing a rally continuation since the July 26 high and preventing VET from triggering a double bottom pattern. Until the altcoin actives the double bottom pattern, the outlook is neutral with the outside potential for a mild pullback.

VeChain price in the crucial hours of the bottoming process

VeChain price has manufactured a 45.88% gain since July 21, carrying the cryptocurrency near the double bottom trigger price of $0.095 and the strategically important 200-day SMA at $0.097. Moreover, the tight VET price action over the last seven sessions has compressed the Bollinger Band to the narrowest range since the decline in early July.

The VeChain price contraction has positioned VET to experience a sharp move in the coming days. After triggering the double bottom, a resolution to the upside will struggle with the 200-day SMA at $0.097. Following a successful breakout above the long-term moving average, the digital token is cleared to test the 38.2% Fibonacci retracement level of the April-May correction at $0.133, delivering a 58% return from the current price. The Fibonacci level will be firm resistance due to the price congestion in late May and early June.

The measured move of the double bottom is 41.69%, presenting a VeChain price target of $0.135, which is slightly above the 38.2% retracement level of $0.133.

VET/USD daily chart

VET/USD daily chart

Adding to the bullish VET narrative is the approaching bullish Golden Cross pattern on the six-hour VeChain price chart. The pattern is activated when the 50 six-hour SMA crosses above the 200 six-hour SMA. The last Golden Cross on the six-hour chart occurred in November 2020, right before the beginning of the considerable advance into the April high.

VET/USD 6-hour chart

VET/USD 6-hour chart

VeChain price is in the crucial hours of the bottoming process as resistance is gaining influence, and the downside is only protected by the 50-day SMA at $0.080. A failure at the tactically important moving average needs to attract support at the June 27 low of $0.073, or VET is at risk of a deeper correction, potentially to the June 22 low of $0.059. The retracement would point to a more complex bottoming process or signal that the rebound was just due to an oversold condition on the daily Relative Strength Index (RSI).

VeChain price has the price structure to reach bullish outcomes if it can overcome the suffocating resistance of the Anchored VWAP and the 200-day SMA. Still, the contraction in price should amplify the price energy to make a breakthrough.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin (BTC) price extends its decline for a second consecutive day on Wednesday, trading slightly down at around $87,600 after a 30% surge since November 5 pushed BTC to a new all-time high at $89,940.

More Bitcoin News
Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Daren Li, a Chinese citizen, pleaded guilty to conspiracy to help launder $73 million stolen in cryptocurrency scams. Li laundered funds using a network of shell companies and international bank accounts.

More Cryptocurrencies News
Cardano bulls show signs of exhaustion

Cardano bulls show signs of exhaustion

Cardano’s price is falling on Tuesday as it faces rejection around $0.624 and traders engaged in profit-taking following the recent rally. Technical indicators show signs of weakness in upward momentum as the RSI exits from the overbought territory.

More Cardano News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in the red on Tuesday following strong rallies since last week, driven by crypto-friendly candidate Donald Trump's election victory. 

More Cryptocurrencies News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP