• VeChain price is struggling to overcome the Anchored VWAP at $0.087 that began on January 3, 2021.
  • VET came close to activating the double bottom on August 1.
  • The six-hour chart reveals a Golden Cross is fast approaching, suggesting higher prices.

VeChain price has built on the rebound from the 50-week SMA, registering a 15.21% gain last week and closing July with a minor decline of -1.64%. The persistence of the Anchored VWAP has been containing a rally continuation since the July 26 high and preventing VET from triggering a double bottom pattern. Until the altcoin actives the double bottom pattern, the outlook is neutral with the outside potential for a mild pullback.

VeChain price in the crucial hours of the bottoming process

VeChain price has manufactured a 45.88% gain since July 21, carrying the cryptocurrency near the double bottom trigger price of $0.095 and the strategically important 200-day SMA at $0.097. Moreover, the tight VET price action over the last seven sessions has compressed the Bollinger Band to the narrowest range since the decline in early July.

The VeChain price contraction has positioned VET to experience a sharp move in the coming days. After triggering the double bottom, a resolution to the upside will struggle with the 200-day SMA at $0.097. Following a successful breakout above the long-term moving average, the digital token is cleared to test the 38.2% Fibonacci retracement level of the April-May correction at $0.133, delivering a 58% return from the current price. The Fibonacci level will be firm resistance due to the price congestion in late May and early June.

The measured move of the double bottom is 41.69%, presenting a VeChain price target of $0.135, which is slightly above the 38.2% retracement level of $0.133.

VET/USD daily chart

VET/USD daily chart

Adding to the bullish VET narrative is the approaching bullish Golden Cross pattern on the six-hour VeChain price chart. The pattern is activated when the 50 six-hour SMA crosses above the 200 six-hour SMA. The last Golden Cross on the six-hour chart occurred in November 2020, right before the beginning of the considerable advance into the April high.

VET/USD 6-hour chart

VET/USD 6-hour chart

VeChain price is in the crucial hours of the bottoming process as resistance is gaining influence, and the downside is only protected by the 50-day SMA at $0.080. A failure at the tactically important moving average needs to attract support at the June 27 low of $0.073, or VET is at risk of a deeper correction, potentially to the June 22 low of $0.059. The retracement would point to a more complex bottoming process or signal that the rebound was just due to an oversold condition on the daily Relative Strength Index (RSI).

VeChain price has the price structure to reach bullish outcomes if it can overcome the suffocating resistance of the Anchored VWAP and the 200-day SMA. Still, the contraction in price should amplify the price energy to make a breakthrough.

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

Bitcoin price not out of the woods as sidelined investors remain fearful

Bitcoin (BTC) price is still not yet set for a rebound as bears can trip bulls and push the price back below the pivotal level at $36,709. As markets are trying to catch a breather, it does not look like bears will be going away that easily and could pressure BTC price action to the downside. 

More Bitcoin News

Ethereum price at risk of slipping below $2,000

Ethereum (ETH) price action looked to be starting a rebound yesterday as bulls came in late in the US session and pushed price action back above the monthly S2 support level around $2,378. During the ASIA PAC session, however, almost half of the bull pop got erased, and bears are back, putting pressure on S2 to the downside. 

More Ethereum News

Solana beats all other blockchains despite degraded performance, says FTX Sam Bankman-Fried

The Solana network suffered an outage several times over the past two weeks. Users complained about failed transfers, and the Ethereum-killer revealed that DeFi investors drove a spike in complex transactions. 

More Solana News

Crypto.com CEO Kris Marszalek predicts higher institutional investment in crypto

Crypto.com CEO believes that institutional investment in crypto could continue rising in 2022. Analysts have noted that the native token of the Crypto.com exchange did not get negatively impacted after the recent security incident. 

More Crypto.com News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis