- VeChain price looks ready to retest the 50% Fibonacci retracement level at $0.120.
- A breakdown of this barrier is likely to knock VET down 20% to $0.104.
- A daily close above $0.146 will invalidate the bearish thesis.
VeChain price failed to hold above a stable support level, leading to a steep correction. This downswing is fast approaching the midpoint of the trading range and will decide the next course of action for VET.
VeChain price at an inflection point
VeChain price has dropped 32% between November 9 and November 22 after failing to hold above the range high at $0.158. As VET trades around the $0.130 level, investors can expect this downswing to continue until a retest of the 50% Fibonacci retracement level at $0.120.
This level is crucial in determining the short-term bias for VET. A daily close below $0.120 will suggest that investors are booking profits and will probably drive the market value of VET below the fair value.
Assuming this scenario plays out, market participants can expect the VeChain price to dip into the high probability reversal zone, ranging from $0.097 to $0.110. In particular, VET could drop down by 20% to the 78.6% Fibonacci retracement level at $0.104.
VET/USDT 12-hour chart
While the above narrative is a short-term bearish outlook, market participants can expect VeChain price to find its feet around the high probability reversal zone, extending from $0.097 to $0.120, and potentially gear up for a rebound.
If VET prematurely bounces off the 50% Fibonacci retracement level at $0.120 and produces a daily close above $0.146, it will create a higher high and invalidate the bearish thesis. In this case, VeChain price could make another attempt to flip the range high at $0.158 into a support 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.