VeChain Price Prediction: VET rally might correct as multiple time frames flash ‘sell’

VeChain price has seen a tremendous increase over the last couple of months due to the parabolic rally. However, now VET bears could run amok as bulls take a breather.

VeChain price due for retracement

VeChain price has rallied more than 310% since March 2021. This bull run might face temporary exhaustion of buying pressure and result in a minor correction.

On the daily chart, the VET bulls have ignored the Momentum Reversal Indicator’s (MRI) reversal signal in the form of a red 'one' candlestick. If this momentum continues to persist, the VeChain price could tap the immediate breakout line at $0.17 after rising 7%.

Following this move, a retracement to the immediate support level at $0.147 seems likely. If the short-term bearish momentum overwhelms the buyers here, the pullback could extend toward the 78.6% Fibonacci retracement level at $0.128.

The bearish thesis becomes more evident on the 4-hour chart, where the VET price is already testing the MRI’s breakout line at $0.158. A failure to close above this will see VeChain drop to the immediate demand zone ranging from $0.142 to $0.147.

However, it is unlikely that this level will hold if the selling pressure increases. In such a case, a VeChain price might drop to the subsequent support zone that extends from $0.126 to $0.13. If the bulls decide to keep the parabolic rally alive, this area would be the best place to start.

Adding credence to the bearish outlook are the multiple A, B and C extensions, which suggest that VET’s upswing is overextended and needs to cool off before proceeding higher.

VET/USDT 1-day and 4-hour charts

The bearish thesis will face invalidation if the buyers slice through the breakout line at $0.17 on the daily chart.

In this scenario, the rally could extend to the 127.2% and the 141.4% Fibonacci extension levels at $0.177 and $0.194, respectively.