VeChain Price Forecast: VET bulls’ exhaustion sets up stage for 15% correction
|- VeChain price hints at a retracement after aggressive buying that propelled it by 77%.
- The MRI warns that a cycle top might be underway.
- A 15% correction to the support level at $0.198 could occur before VET heads higher.
VeChain price has seen a tremendous bull rally that has caused it to more than double in less than a week. Now, the cryptocurrency could pull back as this technical indicator flashes a warning sign.
VeChain price faces decisive moment
On the 12-hour chart, VeChain price is trading around $0.242, well above the parallel channel that contained it for the past quarter. A sudden spike in buying pressure propel VET by 77% leading to a breakout of the upper trend line.
Now, the Momentum Reversal Indicator (MRI) has flashed a warning sign that comes in the form of a yellow ‘one’ candlestick. If the rally continues, the threat of a cycle top may arrive in a red ‘one’ candlestick, which projects a one-to-four candlestick correction.
Hence, investors need to pay close attention to the subsequent 12-hour candlestick close to evaluate the direction of VET.
However, if the reversal signal arrives, investors can expect a 13% pullback to the 78.6% Fibonacci retracement level at $0.211. If the buyers fail to contain this downward thrust, VeChain price could swing as low as 0.198, where a potential reversal in trend could ensue.
Under particular circumstances, sellers could crash VET to the 61.8% Fibonacci retracement level at $0.17
VET/USDT 12-hour chart
However, due to the nature of the bull run, VeChain price could ignore the warnings or the cycle top indications. On April 9, VET surged 18% after the MRI flashed a reversal sign. Hence, if something similar were to happen, market participants can expect a retest of the all-time highs at $0.279.
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.