• VeChain price falls flat at the resistance formed by the Anchored Volume Weighted Average Price (VWAP) and the daily Ichimoku Cloud.
  • The VET six-day Rate of Change (ROC) shows the best gain since the April high.
  • The digital token holds the 50-week simple moving average (SMA) on a closing basis, improving outlook.

VeChain price did trade below the June 22 low in July but has responded with a 40% return (based on the current price) over the last six trading days, a sign of commitment and emotion in a cryptocurrency that had lead the market lower. However, the easy money has been earned as VET is now confronted by four credible indicators, forming a commanding resistance level that will limit the upside for at least the short term.

VeChain price needs a pick and shovel as the hard work starts now

On July 20, VeChain price recorded an oversold reading on the daily Relative Strength Index (RSI) but responded the next day with the best daily gain since May 31, putting the cryptocurrency in the position to break the dominant descending trend line beginning at the May high. On July 22, VET was released from the downtrend and set off a rally to today’s high of $0.093.

The advance from the July 20 close below the June 22 low of $0.059 reached 63% at today’s high before reversing strongly. Some will attribute the VeChain price reversal to the bearish Amazon news regarding Bitcoin. Still, the more objective explanation is that VET met the 50-day SMA at $0.084, the Anchored VWAP from January 3 at $0.087 and the lower bound of the daily Ichimoku Cloud at $0.089. The 200-day SMA reinforces those resulting levels of resistance at $0.095.

In the short term, VeChain price will be pressed lower as profit-taking continues after the remarkable spurt higher. Recognizable VET support begins with today’s low of $0.069, aligned with a range of price congestion extending back to late June that held over the last two days.

Any VeChain price weakness below $0.069 will invite a test of the May descending trend line crossing with the June 22 low of $0.059. A failure to hold targets lower prices for VET and confirms the current rebound as a dead cat bounce.

VET/USD daily chart

VET/USD daily chart

To entertain higher prices, VeChain price will need to begin with a daily close above $0.095, where the 200-day SMA matches the June 29 high. It then becomes the battle to overcome the inherent resistance attributed to the daily Ichimoku Cloud.

The easy money has been made after VeChain price tagged key resistance today. The issue moving forward for investors is if the rebound is the beginning of a sustainable uptrend or just a dead cat bounce. VET will need to get out the pick and shovel if it is a real turnaround, as the barriers to continued bullish outcomes are great.  

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

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast