- VeChain price complicated by resistance at key moving averages as death cross emerges.
- Emergence at the apex of the ascending triangle marginalizes the pattern to generate substantial returns.
- A decline below $0.119 will confirm the breakout failure on the twelve-hour chart.
VeChain price rests at a major inflection point on the twelve-hour chart, complicated by the notable resistance defined by the intersection of two important moving averages and the recently triggered death cross. A close above $0.152 renews a bullish interpretation of the fledgling breakout.
VeChain price seeks strength, instead met with distribution
VeChain price tumbled 80% from the April high to the May low, logging its worst weekly decline since 2018 and placing it among the most significant losses in the cryptocurrency complex in May.
VET countered the tremendous decline with a sizeable 220% rebound from the May 19 low into the May 20 high. From May 21 to June 2, VeChain price composed an ascending triangle pattern that triggered on June 3 with a marginal break above the triangle’s supply line (upper).
However, VeChain price followed the breakout with a 12% reversal and a bearish outside bar on the twelve-hour chart, signaling distribution. The setback occurred just above the intersection of the 50 twelve-hour simple moving average at $0.138 and the 61.8% Fibonacci retracement of the May correction at $0.140.
The breakout potential was also depressed because VET resolved the pattern at the apex of the triangle. Based on historical precedent, breakouts at or near the apex detract from the vigor of the advance and increase the probabilities of it failing.
The measured move of the pattern is 67% from the triangle’s upper trend line at $0.140, setting VeChain price on course to rally near the May at $0.250.
VeChain price is clearly at an inflection point on the twelve-hour chart for the eventual resolution of the triangle and for the larger rally from the May 19 low, particularly in light of the activation of a death cross. A death cross occurs when the fast-moving average (50 twelve-hour SMA) crosses below the slow-moving average (200 twelve-hour SMA).
VET needs a twelve-hour close above $0.152 to confirm the breakout that may strike a quick advance to the 78.6% retracement at $0.189.
A successful breakout above the 78.6% retracement level leaves VET poised to reach the measured move target of $0.234.
VET/USD 12-hour chart
If VeChain price falls below $0.119, market operators should pivot their trading direction to the short side. A decline below $0.092 will confirm the bearish narrative.
The confluence of a death cross, a significant Fibonacci retracement level and a bearish engulfing bar on the breakout has shifted VET into a sideways drift. Nevertheless, investors should not be surprised or ill-prepared if VeChain price turns down with momentum moving forward.
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
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.