VeChain price is very likely to drop by 21% to $0.10 after crucial rejection


  • VeChain price has struggled to close above the 4-hour Kijun-Sen in the Ichimoku system.
  • Bearish continuation pattern signals a warning of price dropping.
  • The 61.8% Fibonacci expansion is the likely target zone on the continuation move lower.

VeChain price remains trading at a level significantly higher than the lows it made during the flash crash on Tuesday. It is currently trading up 25% since then, but the current swing structure and bearish continuation setup point to a likely re-test of the Tuesday lows. 

VeChain price shows a Bear Flag pattern

There are two noticeable bear flag patterns on VeChain’s chart. The first is on the candlestick chart, which terminates against the Kijun-Sen at $0.128. The Kijun-Sen has been the primary resistance level on the 4-hour chart since the first significant bounce from the Tuesday low. 

The second bearish formation is on VeChain’s Relative Strength Index. The last high of the bear flag channel on the Relative Strength Index topped out at 45. 45 is the first overbought condition in a bear market. 

Adding to the likelihood of another move lower is the hidden bearish divergence between the candlestick chart and the Composite Index. Upon confirmation of the bear flag initiating another leg south, the target area is the 61.8% Fibonacci expansion at $0.100. 

However, most Fibonacci expansions (especially those coming off of the first pullback/throwback) will reach their 100% level. If the 100% Fibonacci expansion scenario plays out, then VeChain would be trading at the $0.085 level.

VeChain US dollar price chart

VET/USDT 4-hour chart

Bears may want to temper any excitement or expectation of a move below the $0.10 level. The bottom of the Cloud (Senkou Span B) on the daily chart and the 50% Fibonacci retracement fall into the $0.10 value area.

The bearish continuation scenario will be invalidated if VeChain price returns to a close above the $0.15 level. 

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

XRP constricts before breaking out to $1

XRP showed strong signs of recovery after the shock of this past Saturday’s flash crash wore off. The past three days of congestion after a strong rally from the lows may begin a new uptrend for XRP.

More Ripple News

Ethereum in a pennant, with bullish breakout as tailwinds reemerge

Ethereum (ETH) price has formed a pennant that quit rapidly after the big sell-off during the weekend. Between $4,646 and $4,060, the price ranges from lower highs and higher lows. 

More Ethereum News

Bitcoin needs support to hold, so that bulls can reclaim $50,000

BTC saw bulls attempting to pair back a significant piece of the occurred losses from last Saturday. But bulls have hit a curb after reclaiming $50,000, as price action fades below and tests the first real support for further downside. 

More Bitcoin News

Cardano price in phenomenal buying zone as ADA targets $3

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate different patterns and indicators that suggest ADA is primed to advance further.

More Cardano News

The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

Read full analysis

BTC

ETH

XRP