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VeChain price looks at 13% descent before VET can start new uptrend

  • VeChain price retraced 9% over the past 24 hours and shows signs of extending it.
  • A breakdown of the $0.117 support barrier might push VET to $0.104.
  • If the bulls set up a higher high above the August 23 swing high at $0.137, it will invalidate the bearish thesis.

VeChain price seems to have hit a local top on August 16 as it has retraced continuously since. A retracement is necessary before VET can hop on a new uptrend.

VeChain price waits for sellers’ exhaustion

VeChain price set up a swing high at $0.145 on August 16 and has been on a 17% downswing so far. While VET still has the $0.117 support level, this barrier will likely be sliced through if the sell-off continues with the big crypto.

In such a case, investors can expect VeChain price to crash roughly 13% to tag the trading range’s midpoint at $0.104.

While a breakdown of this barrier is not outside the realm of possibility, it is unlikely, considering the overall structure of the market is still bullish.

Therefore, market participants can expect a resurgence of buyers around the 50% Fibonacci retracement level at $0.104. The resulting upswing could push VET through a barrage of resistance barriers and attempt to set up a higher high above $0.138.

If this move occurs, it will confirm the start of a new uptrend and indicate more gains on the horizon, quite possibly a retest of the range high at $0.153.

VET/USDT 6-hour chart

VET/USDT 6-hour chart

Contrary to popular belief, if VeChain manages to bounce off the $0.117 support barrier, it might make a premature run at creating a swing high above $0.137. If the buyers are successful, it will invalidate the bullish outlook and project a further ascent to the range high at $0.153.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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