VeChain Technicals Spell Trouble for the Bulls
Key Takeaways
- VeChain is down over 10% from its recent high of nearly $0.10.
- The price action seen since the beginning of the year suggests that VET is poised to retrace to $0.06 before it bounces back.
- A technical indicator further validates the pessimistic scenario.
A crucial resistance level has rejected VeChain’s uptrend. Now, VET seems primed for further losses as several sell signals pop up.
VeChain Flashes Multiple Sell Signals
VeChain posted massive gains throughout March, rising by nearly 150%. The coin opened the monthly trading session at a low of $0.04 and surged to a new high of nearly $0.10 on Mar. 22.
A wave of profit-taking hit VET after the peak, pushing its market value down by more than 23%. Although prices have partially recovered, the twentieth-largest cryptocurrency by market capitalization could be bound for further losses.
VET has been contained within an ascending parallel channel since December 2020. Each time VET has risen to the channel’s upper boundary since then, a rejection occurs that pushes prices to the lower edge. From this point, it tends to rebound.
If this price action repeats, the recent rejection from the resistance trendline might be significant enough to push VeChain towards the channel’s lower boundary at $0.06 before it bounces back.
The Tom DeMark (TD) Sequential indicator adds credence to the pessimistic outlook. This technical index presented sell signals in the form of green nine candlesticks on both the weekly and 3-day charts.
The bearish formations forecast that VeChain will retrace for one to four candlesticks before the uptrend resumes.
Despite the grim worst-case scenario, the cryptocurrency market’s unpredictability means a bullish market outlook is not out of the question. Bull investors push VeChain above the recent high of nearly $0.10 to avoid incurring further losses.
Such an upswing would likely generate FOMO among market participants as VET will be entering into price discovery mode. Under such unique circumstances, this cryptocurrency could advance towards $0.11 or even $0.12.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article