- VeChain price has struggled to close above the 4-hour Kijun-Sen in the Ichimoku system.
- Bearish continuation pattern signals a warning of price dropping.
- The 61.8% Fibonacci expansion is the likely target zone on the continuation move lower.
VeChain price remains trading at a level significantly higher than the lows it made during the flash crash on Tuesday. It is currently trading up 25% since then, but the current swing structure and bearish continuation setup point to a likely re-test of the Tuesday lows.
VeChain price shows a Bear Flag pattern
There are two noticeable bear flag patterns on VeChain’s chart. The first is on the candlestick chart, which terminates against the Kijun-Sen at $0.128. The Kijun-Sen has been the primary resistance level on the 4-hour chart since the first significant bounce from the Tuesday low.
The second bearish formation is on VeChain’s Relative Strength Index. The last high of the bear flag channel on the Relative Strength Index topped out at 45. 45 is the first overbought condition in a bear market.
Adding to the likelihood of another move lower is the hidden bearish divergence between the candlestick chart and the Composite Index. Upon confirmation of the bear flag initiating another leg south, the target area is the 61.8% Fibonacci expansion at $0.100.
However, most Fibonacci expansions (especially those coming off of the first pullback/throwback) will reach their 100% level. If the 100% Fibonacci expansion scenario plays out, then VeChain would be trading at the $0.085 level.
VET/USDT 4-hour chart
Bears may want to temper any excitement or expectation of a move below the $0.10 level. The bottom of the Cloud (Senkou Span B) on the daily chart and the 50% Fibonacci retracement fall into the $0.10 value area.
The bearish continuation scenario will be invalidated if VeChain price returns to a close above the $0.15 level.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.