VeChain Price Forecast: VET lacks buyer commitment, as price action remains cryptic
- VeChain price recovers some of the intra-day losses and recoups ascending channel trend line.
- Lack of impulsiveness since April 23 keeps rebound categorized as a corrective.
- VET moving averages remain in uptrends, indicating a basis for support.
VeChain price has orchestrated an ascending channel since the April 23 low, revealing few hints of direction. The ambiguous price action should keep traders on the sidelines until there is a clear resolution of the channel, but the overall bias is tilted to the downside.
VeChain price frustrates both sides of the trade
No doubt, VET has been a leading performer in the cryptocurrency complex in 2021, but since the blow-off move in mid-April and the resulting correction, VeChain price has resisted confirming price direction. The entire bounce has looked more corrective than impulsive.
The intra-day decline today, although noteworthy, did not undercut the May 5 low at $0.181, keeping the series of higher lows intact and VET in a minor uptrend.
A daily close below the channel’s lower trend line at $0.194 would be the first clear signal of future price direction since April 23. If the close is followed by a trade below the May 5 low, it would confirm a minor trend change and a quick test of the 100 twelve-hour simple moving average at $0.159.
If VeChain price trades below the April 23 low at $0.128, it would signal that a more significant trend change is occurring, and traders should be prepared for a deeper correction to the 38.2% Fibonacci retracement at $0.108. A collective sell-off in cryptocurrencies may force VeChain price to test the 50% retracement at $0.081.
VET/USD 12-hour chart
The bearish narrative is abolished if VeChain price achieves a daily close above the channel’s upper trend line and the April 16 high at $0.278.
According to the data from over 1000 crypto-related channels, including Telegram groups, crypto reddits, discord groups, and private trader chats, VeChain’s daily social volume languishes at a low level. The low reading of VET mentions illustrates that it is not on the radar of retail investors, despite a mild upward trajectory.
VET related mentions on social media
A subdued level of social interest does provide the basis for buying pressure if VeChain price does eventually resolve the channel to the upside. However, the tight range of the last three weeks suggests that VET requires a catalyst to unravel the cryptic price action and unleash a definitive resumption of the uptrend.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
