VeChain exposed to broader market weakness and VET could fall to $0.11
- VeChain price is on a knife’s edge; it could experience a free fall if support fails.
- Massive support exists directly below VeChain’s current price.
- VeChain is better positioned than most altcoins to experience a massive push higher.
VeChain price on the weekly chart shows strong defense near the $0.13 value area. Many support levels exist near $0.13, and that level must hold to prevent any future sell-off.
VeChain price could drop 50% or rally 75%
VeChain price experienced a significant drop during the Tuesday trade session following strong selling across the entire cryptocurrency market. Vechain has dropped as much as 15% below the weekly open.
There is a considerable number of support levels between the $0.13 and $0.14 value area. The 2021 Volume Point Of Control, weekly Tenkan-Sen, weekly Kijun-Sen, and bottom of the Cloud (Senkou Span B) reside in that price range. The only Ichimoku level not in that support zone is the top of the Cloud (Senkou Span A) at $0.155.
The most prominent warning for VeChain price moving lower is the positions of its oscillators. The Composite Index is at a historical resistance level, meaning price often moves lower upon hitting that historical resistance. Additionally, the Relative Strength Index has yet to move out of a bear market, evidenced by its failure to breach the final overbought level at 65.
VET/USDT Weekly Ichimoku Chart
Failure to hold the $0.13 to $0.14 value areas as support could see VeChain price experience a flash crash to a 38.2% Fibonacci retracement level at $0.07.
Bulls could invalidate the near-term bearish outlook by holding VeChain to a weekly close above the Cloud at or above $0.155. From there, a renewed push to test the prior all-time highs at $0.26 is likely.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
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