VeChain price might drop 20% if VET fails to hold above crucial barrier

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.