• VeChain price holding tactical 50-day simple moving average (SMA).
  • Ichimoku cloud intersects with tactical moving average, offering additional support.
  • Largest three-day decline since March 2020 begins the final leg of an ABC correction.

VeChain price decline below the multi-day ascending channel has introduced a new vulnerability for VET to the oscillations of the cryptocurrency complex. At the moment, the altcoin is being protected by the 50-day SMA. However, guided by the measured move target of the ABC correction, VeChain price should dive below the April 23 low before locating a meaningful bottom.

VeChain price loses the edge against Bitcoin

A 29% decline for VeChain price over three days finally fractured the underlying support of the ascending channel’s lower trend line. Of course, market observers mainly attributed the sell-off in VET to the immediate contagion associated with Elon Musk’s surprising announcement that Tesla would not accept Bitcoin as payment for cars due to his worries about the impact of mining on the environment.

A closer review of the daily VET chart reveals that the rebound from the April 23 low to the May 7 high was corrective, defined by a lack of impulsiveness and accumulation. A bullish evaluation of the cryptocurrency would have generated a substantial rebound following the 55% crash in April.

VeChain price has confirmed the beginning of the C leg of the ABC correction with a measured move target of $0.120 or a 30% decline from the current price. The projection is compiled using the 54% decline from the Apri 17 high at $0.282 to the April 23 low at $0.128 (Point A). A 54% decline from the May 7 high at $0.260 (Point B) equals the measured move target of $0.120 (Point C).

The projected target will undercut the April 23 low at $0.128, thereby shaking out the weak holders of VET that held through the first decline. An acceleration in the selling pressure may knock VeChain price down to the 38.2% Fibonacci retracement at $0.108. The Fibonacci level corresponds to the rally that began from a cup-with-handle breakout at the beginning of 2021.

VET/USD daily chart

VET/USD daily chart

It is crucial to consider the bullish alternative considering that VeChain price is currently sitting on a solid support level framed by the 50-day SMA and Ichimoku cloud. The potential exists that the crash through the ascending channel was sufficient to remove the weak holders and the new support offers an opportunity for eager VET investors.

The primary upside targets for VET are Point B at $0.260 and the all-time high at $0.282.

As measured by the number of VET mentions on 1000+ crypto social media channels, including Telegram groups, crypto subreddits, discord groups, and private trader chats, the social volume has been trending lower since April 16.

Naturally, the social volume would turn lower with price, but during the corrective bounce following the 50% decline in April, social volume maintained the downward trajectory, except for one brief respite. Although VeChain price came within 10% of the April high, the lack of coverage in social media speaks to its declining interest and relative strength in the cryptocurrency complex.

VET social volume

VET social volume

For now, the attraction for VET has notably subsided, and the price structure tilts bearish leaving VeChain price outlook vulnerable to ongoing turbulence in the broader market.

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 targets $5.50 after crucial rebound

XRP seems to be holding above a major support cluster. As long as Ripple remains trading above $0.71, it could rebound to new all-time highs. A head-and-shoulders pattern on the weekly chart suggests an incoming rally to $5.50. XRP looks poised to enter a 600% rally to new all-time highs. 

More Ripple News

Shiba Inu price poised to jump by 20% as SHIB on-chain metrics turn bullish

Shiba Inu price is holding above crucial support. In the meantime, on-chain metrics suggest that SHIB could be bound for a bullish impulse. If buy orders pile up, the meme-coin might rise by more than 20%.

More Shiba Inu News

Cardano price could crash by 65% as ADA long-term holders go on a selling spree

Cardano price seems to be in trouble. Long-term ADA holders have been selling. Further downward pressure could result in a 65% correction. Cardano price must hold above $1.48 to avoid a major sell-off. 

More Cardano News

VeChain price targets $0.65 if this support level holds

VeChain price seems to be forming an ascending triangle. Breaking below $0.09 could be catastrophic for VET bulls. But if this support level holds, this cryptocurrency could rise to $0.65.

More VeChain 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