- VeChain’s consolidation is likely to culminate in a colossal 21% downswing.
- VET short-term technical levels flip bearish based on RSI and MACD.
- Holding within the confines of the symmetrical pattern would avert potential breakdown to $0.068.
VeChain is down 3.6% over the last 24 hours as bulls continue to lose grip. The last few days have witnessed consolidation dominate price action. Besides, a descending trendline also limited VET’s upside. The four-hour chart highlights the formation of a symmetrical triangle pattern, with a 21% breakdown target.
VeChain faces rising selling pressure
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart has slipped into the negative region. In addition, the MACD line (blue) recently crossed below the signal line. This technical indicator validates the bearish outlook.
The same four-hour chart illustrates the formation of a symmetrical triangle. This pattern is not exclusively bullish or bearish. It brings to light a consolidation period before an upswing or downswing comes into the picture.
Two converging trend lines create a symmetrical triangle. Following the consolidation, a breakdown occurs when the price slices through the lower trend line and marks the start of a downtrend. For instance, VeChain is likely to drop by 21% to $0.068 if the price slips under the ascending line.
VET/USD 4-hour chart
Looking at the other side of the picture
The TD Sequential indicator is likely to present a buy signal on the 4-hour chart. This call to buy in would form in a red nine candlestick. The red candle suggests that bears are losing grip as buyers prepare to take control. If validated, VeChain may swing higher in one to four candlesticks on the same chart.
VET/USD 4-hour chart
It is worth mentioning that the Relative Strength Index (RSI) on the 4-hour chart hints at the sideways trading lasting longer. Moreover, a rebound from the support at 40 would encourage investors to increase their stakes as speculation mounts for VET’s upswing above the symmetrical triangle. The technical pattern has a 21% breakout target close to $0.11.
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.