• VeChain price respecting the 10-week simple moving average (SMA) during staircase advance.
  • 3.618 Fibonacci extension level halted the bull market.
  • 330% gain from cup-with-handle breakout on January 4.

Vechain price has stalled for two weeks at the 3.618 Fibonacci extension level of the 2018-2020 bear market after climbing 106% above the 10-week SMA. During the bull market, VET has reached similar deviations in January and February before correcting to around the 0.618 Fibonacci retracement level of the prior advance, which coincided with the moving average. Based on historical precedent, VET could fall to at least $0.059 and then $0.053.

VeChain price to test bulls over the next 2-3 weeks

It is not often that a financial market or instrument follows a symmetrical path during an advance, but there has been interesting symmetry in the case of VET. First, beginning in late December 2020, each leg higher has corrected to close to the 0.618 Fibonacci retracement level. Second, each correction discovered support at the 10-week SMA. Third, each leg higher peaked over 100% above the moving average. With such symmetrical guideposts, it becomes easier to project the outlook for VeChain price moving forward.

Utilizing the criteria above, VeChain price should correct at least another 27% from the current price to touch the 0.618 Fibonacci retracement level of the last leg higher. If the level does not hold, VET should discover notable support at the 10-week SMA, 35% from current price levels. It would be a good risk level for traders to initiate a new long position.

The decline should last 3-4 weeks before the resumption of the decisive advance.

VET/USD weekly chart

VET/USD weekly chart

Of course, a failure to strike support at the 10-week SMA would put the long-term bullish outlook on hold. This would then shift the focus to the trendline beginning at the December 2020 low, which currently rests at $0.047. The next support doesn’t come into view until $0.035. 

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

MATIC continues to march higher with $3 in sight

MATIC price action has certainly been some of the most dramatic post flash crash. Multiple vigorous attempts by short-sellers to push MATIC lower have all failed and have led to MATIC pushing towards new all-time highs. MATIC price action, in case you ...

More Polygon news

Dogecoin bears leave the scene as DOGE rises towards $0.24

Dogecoin price holds steady near the $0.18 value area, halting any further downside movement. Buyers appear to be showing up and preparing Dogecoin for a big launch higher. Explosive bullish entry present on the Point and Figure chart.

More Dogecoin news

XRP constricts before breaking out to $1

XRP price, like almost every other cryptocurrency, showed strong signs of recovery after the shock of this past Saturday’s flash crash wore off. The past three days of congestion after a strong rally from the lows may begin a new uptrend for XRP.

More Ripple news

Ethereum in a pennant, with bullish breakout as tailwinds reemerge

Ethereum (ETH) price has formed a pennant that quit rapidly after the big sell-off during the weekend. Between $4,646 and $4,060, the price ranges from lower highs and higher lows.

More Ethereum news

The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

Read full analysis