• VeChain price death cross raises the probabilities of additional weakness moving forward.
  • VET may be shaping a head-and-shoulders pattern on the twelve-hour chart, projecting a test of the May 23 low.
  • Recent volume structure reveals increasing distribution after a period of inactivity.

VeChain price is down 7% today at the time of writing, unable to build on yesterday’s rally of 6%, creating a further deterioration of the overall price structure. The potential head-and-shoulders topping pattern manifests the weakening price structure and clarifies the levels to be monitored for VET direction confirmation.

VeChain price searches for catalyst, as Bitcoin bounce proves unsustainable

On June 3, after reaching the apex of a symmetrical triangle, VeChain price executed a breakout that was quickly followed by a bearish outside bar on the twelve-hour chart, reflecting distribution. The VET setback occurred just above the intersection of the 50 twelve-hour simple moving average (SMA) at $0.138, with the 61.8% Fibonacci retracement of the May correction at $0.140. The reversal soon was confirmed with a death cross on the twelve-hour chart.

VeChain price followed the twelve-hour reversal bar with a 20% decline into the May 8 low with a mild rise in volume, nearing the 50-day average. The ongoing VET rebound has been blocked by the 50 twelve-hour SMA at $0.122, potentially forming the peak of the right shoulder of a head-and-shoulders pattern.

The pattern symmetry would be best served with additional price strength to get the right shoulder closer in line with the height of the left shoulder. VeChain price could reach the 200 twelve-hour moving average at $0.134 before printing the right shoulder peak, thereby bettering the pattern symmetry.

The head-and-shoulders neckline is now obvious and currently resides at $0.100. A break below would trigger the pattern and make VeChain price vulnerable to a measured move decline of almost 37%, placing VET at $0.063 and below the May 23 low at $0.065. The left shoulder’s low at $0.092 may present some support.

VET/USD 12-hour chart

VET/USD 12-hour chart

VeChain price faces several technical challenges to overturn the deteriorating price structure. VET needs to convincingly dispose of the 50 twelve-hour SMA at $0.121, the 200 twelve-hour SMA at $0.134 and secure a daily close above the 61.8% retracement of the May decline at $0.140.

VeChain price is swayed by the forces of the cryptocurrency complex and not by concerns specific to it. Thus investors should be prepared for uncertain price action moving forward until either the neckline breaks or VET closes above the 61.8% retracement level.

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

Ripple bulls respite to end with blast off to $0.98

XRP price saw a healthy run-up after bleeding excessively over the past three weeks. Investors seem to be booking profits, which has stifled the recent run-up. If this continues, Ripple could bounce off two crucial support levels and restart its uptrend.

More Ripple News

Cardano eyes 25% gains despite recent slowdown

Cardano price shows a bullish structure despite the mayhem caused in late May. ADA set up a higher low on June 8, followed by a quick upswing, a common theme across the crypto market.

More Cardano News

Polygon might retrace before rallying 25%

MATIC price experienced a minor upswing on Wednesday but failed to entice the sidelined investors to jump on board. Additionally, Polygon did not retest a crucial supply barrier during this uptrend, which could indicate that a minor retracement seems likely.

More Polygon News

Three reasons why Shiba Inu price may be ready to rally

Since June, Shiba Inu price has been locked in a descending channel but holding the outstanding May 19 support during the new selling wave in the cryptocurrency complex. The resulting bounce has stalled at the apex line of a previous symmetrical triangle, a level that served as support in late May.

More Shiba News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP