VeChain Price Prediction: VET still in a sweet spot as long as this support level holds
- VeChain price action has soared on favorable tailwinds in cryptocurrencies.
- Since the beginning of the week, price action has dropped, and VeChain is struggling to hold gains.
- Supporting factors are present to keep VeChain in check and try to push price action to $0.15.
Unlike the rallies that have seen many of the crypto majors climb swiftly out of their Summer swoons, VeChain is a bit of an outlier as profits remained muted compared to other alt-cryptocurrencies.
Buyers look to refrain from stepping in and supporting the correction that started at the beginning of the week. VET tried to push beyond the monthly R3 resistance level at $0.14 but could not stay above. Buyers were relatively quick to unwind their positions and take profit, hurting VeChain with a third consecutive negative trading day.
VeChain will see buying appetite reemerge once the fundamentals kick in
Buyers do not have much reason to go long for the moment as the monthly R2 resistance level at $0.12 is not proving very much support either. It almost looks like a small head and shoulders pattern starting from August 13. Next to that, there is not much in the way for price action to pick up anytime soon. Buyers will need to look further down before picking up some VeChain in their portfolio. Around $0.11, a few technical elements are in favor of just that.
VeChain has the green ascending supporting trend line in place that is the backbone of the rally since July 21. Add to that the monthly R1 resistance that is now turning to support and has already showed its importance on August 12, where sellers could not push VET price any further down. Price rebounded and moved further up from there.
Last but not least, the 200-day Simple Moving Average (SMA) is falling in line as well with the monthly R1 and trend line. Thus, buyers have three solid reasons to buy and step into the rally.
VET/USD daily chart
To the upside, expect a retest of the upper bound of the trend channel formation. Just above there, near-term, VeT is facing $0.15 that looks set to form a double bottom first, before a next leg higher.
If sentiment sours and markets turn to the downside, expect a break of the trend channel. First support comes in at $0.095 with the 55-day SMA just below around $0.09.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
