VeChain price can fall further as VET has yet to bottom out

  • VeChain is on a downward trajectory. 
  • A red descending trend line is dictating price action again after buyers tried to break higher. 
  • Short term, a bounce might turn into a dead cat bounce.

VeChain (VET) is back in a downward trajectory since August 16. The turn in sentiment comes after the solid rally in cryptocurrencies that caused a favorable tailwind for VET. Price action rose up toward $0.14 before falling back toward $0.11.

The turn to more negative sentiment comes just when buyers attempted to overthrow the red descending trend line, originating from April 19, and is keeping price action in check to the downside. Buyers made several attempts, but after six failed attempts sellers took over and are now running VET lower. Since August 24, price action is showing lower lows and lower highs, making it a bearish trend.

A correction is inevitable and could send VET back up for a retest

Not all bad news, as with this correction comes opportunity for buyers. A Fibonacci retracement shows how well price action has behaved itself at $0.10. Looking back at May, this level often acted as support and was tested several times throughout, before really breaking in June. 

Add to that the black line at $0.097. This pattern is of high importance in the short term. On August 6 buyers were not able to take this level out, but the next day price action clearly shot above it, only to return to test the level on August 9. After that, the rally kicked a gear higher, making this level a big entry point for buyers that are still in their trades. 

VET/USD daily chart
VET/USD daily chart

Expect the correction first before buyers will step in again. The Fibonacci level at $0.10, together with that buying pattern at $0.097 and the psychological importance of $0.10, make this level an excellent opportunity to step in.

Should sentiment shift back to more positive levels, expect buyers to flock in quickly and try for another push to overthrow the roam of that red descending trend line. As this red trend line has shown its importance, expect that this red line will act as support and again an excellent opportunity for another long position in VET.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cryptos enter buy zone

Bitcoin price has made a significant dip this week, dropping more than 11% and returning levels not trades since August 2021. Etheruem price hits new three-month lows, threatens a return to the $2,300 value area. XRP price looks determined to push lower to the $0.65 support zone before generating another bull run.

More Cryptocurrencies News

Loopring, NEAR and Harmony among the biggest losers as crypto bloodbath intensifies

Altcoins suffered double-digit losses in the recent crypto bloodbath. The recent spike in altcoin prices was followed by a correction for Loopring, Harmony and NEAR. The losses nursed by altcoins were accompanied by a wave of selling pressure across exchanges. 

More Cryptocurrencies News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist. 

More Shiba Inu News Price Prediction: CRO ready to return to $0.25 Coin (CRO) is withstanding the current market headwind not that great. It has already lost over 50% of its value from the highs, and CRO could be set to lose another 30% as essential support is being breached.

More News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis