- VeChain price knocked to the technical ground but closed yesterday with a bullish hammer candlestick pattern.
- Weekly Relative Strength Index (RSI) is still overbought.
- VeChainThor is enabling companies to build high-quality and expandable decentralized projects.
VeChain price mounted a tremendous rebound yesterday, but collective weakness in the cryptocurrency market may lead to some residual selling in VET over the next couple of days. However, the channel’s upper trend line should contain the selling.
VeChain price to retake relative strength leadership
VET advanced in a rising channel from late November 2020 until mid-February before going parabolic earlier this month. The collective sell-off in the market halted the advance, sending VET lower.
The decline culminated in yesterday’s massive bullish hammer candlestick pattern. The low of the day nearly touched the 61.8% Fibonacci retracement of the cup-with-handle pattern breakout on January 3 and was built on the fourth largest daily volume in 2021, raising the odds it was the end of the 50% implosion.
Most major sell-offs experience some residual selling after rebounding, and it is anticipated over the next couple of days. A trade above yesterday’s high at $0.214 will confirm a new VET rally that should carry it to the all-time high of $0.282. Along the way, the digital token will confront some resistance at $0.220 and $0.253.
One caveat to the bullish thesis is the current high readings on the daily and weekly RSI. Flash-like declines never release the overbought conditions that often suffocate sustainable rallies, so a bearish momentum divergence can be anticipated when VET price reaches new highs.
VET/USD daily chart
For the thesis to be invalidated, it would require a complete retracement of yesterday’s rebound, which is highly unlikely considering the daily chart framework.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.