- VeChain price finds buyers near $0.08.
- Extremely bearish Ichimoku signals could generate traps for bulls and bears.
- A possible intraday fakeout could drive VeChain lower.
Vechain price closed its Tuesday candlestick with some very bearish Ichimoku conditions. However, buyers have stepped in to support price, but there needs to be more conviction on the buy-side; prices are likely to continue south.
VeChain price finds short term support; buyers under threat of being trapped
VeChain price is in one of the most precarious conditions it’s been in since early June 2021. The Chikou Span closing below the Cloud is often the primary and final trigger to define when an instrument converts into a bear market. The Chikou Span closing below the Cloud occurred on the Tuesday candlestick close.
Some short-term support, however, has come in at the $0.08 level. The $0.08 level contains two robust Fibonacci levels: the 61.8% Fibonacci retracement and the 100% Fibonacci expansion. However, within the Ichimoku system, no support now exists on the daily chart. Thus, VeChain prices are likely to continue their road south.
The next area of support for VeChain price is the $0.06 level which contains the weekly Senkou Span A and the 161.8% Fibonacci expansion. A high-volume node in this value area will also yield some support near $0.06. Don’t be surprised if the $0.05 levels get a small test as well.
VET/USDT Daily Ichimoku Chart
If bulls want to invalidate the heavy bearish bias, they’ll need to push VeChain price to significant breakout levels. The first would be a clear close above the Tenkan-Sen and a return inside the Cloud to hold Senkou Span B support ($0.10). Beyond that, bulls ultimately need to close VeChain price and the Chikou Span above the Cloud near the $0.13 value area.
Like this article? Help us with some feedback by answering this survey:
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.