- VeChain price action has soared on favorable tailwinds in cryptocurrencies.
- Since the beginning of the week, price action has dropped, and VeChain is struggling to hold gains.
- Supporting factors are present to keep VeChain in check and try to push price action to $0.15.
Unlike the rallies that have seen many of the crypto majors climb swiftly out of their Summer swoons, VeChain is a bit of an outlier as profits remained muted compared to other alt-cryptocurrencies.
Buyers look to refrain from stepping in and supporting the correction that started at the beginning of the week. VET tried to push beyond the monthly R3 resistance level at $0.14 but could not stay above. Buyers were relatively quick to unwind their positions and take profit, hurting VeChain with a third consecutive negative trading day.
VeChain will see buying appetite reemerge once the fundamentals kick in
Buyers do not have much reason to go long for the moment as the monthly R2 resistance level at $0.12 is not proving very much support either. It almost looks like a small head and shoulders pattern starting from August 13. Next to that, there is not much in the way for price action to pick up anytime soon. Buyers will need to look further down before picking up some VeChain in their portfolio. Around $0.11, a few technical elements are in favor of just that.
VeChain has the green ascending supporting trend line in place that is the backbone of the rally since July 21. Add to that the monthly R1 resistance that is now turning to support and has already showed its importance on August 12, where sellers could not push VET price any further down. Price rebounded and moved further up from there.
Last but not least, the 200-day Simple Moving Average (SMA) is falling in line as well with the monthly R1 and trend line. Thus, buyers have three solid reasons to buy and step into the rally.
To the upside, expect a retest of the upper bound of the trend channel formation. Just above there, near-term, VeT is facing $0.15 that looks set to form a double bottom first, before a next leg higher.
If sentiment sours and markets turn to the downside, expect a break of the trend channel. First support comes in at $0.095 with the 55-day SMA just below around $0.09.
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
Ripple's XRP set sights on $1.100 following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token.
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?
Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF
Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil
Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.
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.
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.