- VeChain price is considering a 10.64% drop below a bearish rectangle pattern.
- Investor sentiment flips negative, increasing the risk of an extended downtrend.
- The 50-day and the 100-day SMAs keep VET price suppressed within the confines of the rectangle.
VeChain price is much closer to a breakout after staying in consolidation for nearly six weeks. Due to the choppy market movement in VET price, a rectangle pattern formed on the 12-hour chart. For now, all eyes are fixated on its ability to escape this sideways price action.
VeChain price eyes one more crash to $0.0194
A bearish rectangle pattern appeared on the 12-hour chart as VET respected an upper range limit at $0.0243 and a lower one at $0.0217. This pattern displays a period of consolidation and indecision between the bulls and bears.
VeChain price is expected to keep testing the horizontal support and resistance numerous times before it eventually breaks out. The bearish rectangle comes into play when sellers take a breather during a downtrend, allowing for consolidation.
A breakout is expected in the direction of the preceding trend before consolidation. In the case of VET that trend was bearish and a 10.64% decline is expected to occur to $0.0194 – a distance equal to the rectangle's width. It is recommended that traders wait for the price to confirm a break below the pattern's support at $0.0217 before triggering their sell orders.
VET/USD 12-hour chart
The 50-day SMA (Simple Moving Average) (in red) at $0.0229 and the 100-day SMA (in blue) at $0.0232 will likely keep thwarting the bulls' battle for a bullish outcome north of the rectangle resistance. Furthermore, the 200-day SMA (in purple) could annihilate movement above the pattern, precisely around $0.0252.
 [17.23.49, 25 Oct, 2022]-638023103487738704.png)
VeChain on-chain volume chart
VeChain price is also facing a massive decline in on-chain activity, especially considering the transaction volume. Looking at the chart below, only 35.34 million VET tokens have exchanged addresses compared to a six-month peak of $631.55 million, as recorded on May 12. For this reason, chances of recovery in the VeChain price have been diminishing. Thus, adding credence to the expected bearish move.
 [17.23.52, 25 Oct, 2022]-638023102937728912.png)
VeChain Positive Sentiment
The positive commentary surrounding VET across multiple social media channels also suffered a considerable drop, as elucidated in the chart above. This drop indirectly shows that investors are taking a hands-off approach to VeChain price and are unlikely to beef up buying activities until the token sustains a northbound price action. Hence, the foreshadowed move to $0.0194 will likely occur in the short term.
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.
Recommended Content
Editors’ Picks
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Cardano founder Charles Hoskinson proposed integration of Bitcoin Cash into a Cardano Partnerchain. 65% of 11,340 voters voted in favor of, to the contrary “No”, meaning “Ayes” have it, but this is pending confirmation.
Render Price Prediction: RNDR could hit $10 after successful breakout with ecosystem’s LD token launchpad
Render (RNDR) price is trading with a bullish bias, boasting higher highs, with the AI crypto coin not only outperforming its sector peers, but also doing better than most altcoins in the broader cryptocurrency space.
Tesla updates payment methods to include DOGE, Dogecoin price rises 6%
Tesla Inc., Elon Musk’s American multinational automotive and clean energy company headquartered in Austin, Texas, is the latest catalyst for Dogecoin (DOGE) price rally.
Sui daily transactions reach 41 million, overtakes Solana with SUI price primed for recovery
Sui (SUI) price has dipped 3 % in the past 24 hours and remains down 15% in the last week. However, other metrics suggest something could be at play in the Sui ecosystem as daily transactions skyrocket.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.