- VeChain price has dropped 20% in under 24 hours and tagged a swing low at $0.157.
- A reversal here, or the demand zone below, could result in a 45% upswing to $0.218.
- A breakdown of $0.126 will invalidate the upswing narrative and result in a 9% downswing to $0.115.
VeChain price has been on an accelerated downtrend since May 7. However, its recent retest of the swing low formed on April 16 indicates hints of reversal.
VeChain price at make or break
VeChain price has crashed roughly 40% since May 7 and is currently testing $0.157. Breaching this support level will lead to a 10% downswing to the demand zone, extending from $0.126 to $0.141. This area of interest was formed between April 10 and 12 and was crucial in building up pressure before rallying 127%. Hence, a dip into this zone will most likely result in a quick upswing.
Therefore, investors can expect a 35% run-up to $0.191. If the buying pressure continues to build up, another 15% rally will push VeChain price to the 50% Fibonacci retracement level at $0.218.
Beyond this ceiling, VET could wick up to the supply zone that stretches from $0.235 to $0.266.
While the upward trajectory detailed above seems straightforward, investors should wait for a close above $0.141 and a retest, which serves as a confirmation of this uptrend. However, if VeChain price produces a decisive close below $0.126, it will invalidate the bullish thesis.
If such a scenario were to evolve, market participants could expect a 9% sell-off to $0.115.
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.