- Vechain price sees bulls struggling to hold ground above key technical areas.
- VET is set to tank once this rally’s backbone breaks to the downside.
- At least an 8% decline is granted with a risk of even a 15% decline if the rally unwinds completely.
Vechain (VET) price has been on a tear with an already 30% gain achieved at one point. The jump came after a rescue package was put together that bails out any Silicon Valley Bank deposit holder and in its turn triggered a rally in Bitcoin. Still the weakness experienced by three banks connected to the crypto industry over the past month is putting pressure on the price action as the picture is nowhere near that rosy for altcoins as presumed these past few days.
Vechain bulls to receive final blow that will kill off this rally
Vechain price was issuing warning signals to traders as the Relative Strength Index (RSI) on Tuesday was shooting through the overbought barrier. In line with that, bulls pierced through the 55-day Simple Moving Average (SMA) and could not open and close above that line. What followed was a fade that is now squashing remaining bulls against the green ascending trend line.
VET has quite a few bulls still trapped in its price action, and bears are squeezing them against the green ascending trend line. Once that trend line breaks, expect to see an exodus of investors as the overall bearish sentiment gets activated again. Expect a drop lower toward either $0.022 around the 200-day SMA and the monthly S1 pivot level or a double down with VET flirting with the break at $0.0200 and printing a 15% loss.
VET/USD 4H-chart
It would not be the first time that the US session will bring some more bullish activity. Expect to see a bounce off that green ascending trend line and this time bears to undergo a squeeze. Bulls will break and close above that 55-day SMA and will try reaching $0.027 by the end of Wednesday with a 13% gain in the books.
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.
Recommended Content
Editors’ Picks
XRP price extends losses on Tuesday, risks decline below support at $0.60
XRP price dropped closer to its psychologically important support level at $0.60 on Tuesday amidst a steep correction in the crypto ecosystem. Most of the top 30 cryptocurrencies by market capitalization have noted a decline in their prices on March 19.
Avalanche price could rise 20% on gaming narrative ahead of GDC conference
Avalanche is an outlier on Monday, rallying while the broader market crashes. It has outperformed Bitcoin price, as well as meme and AI crypto coins, sectors that have been thriving of late. AVAX’s good fortune comes ahead of the Game Developers Conference.
Bitcoin price shows weakness, but new BTC whales have created solid support at $56,400
Bitcoin downside momentum strengthens, giving sidelined and late bulls a chance to buy the dip. The market remains focussed on the oncoming halving, expected to kick off the next bull cycle.
Crypto AI token rally persists, ignited by NVIDIA AI conference
NVIDIA AI conference, starting on Monday, is considered a key AI event as market participants await the unveiling of the next AI chip, B100. NVIDIA’s influence extends to the mining sector in crypto as its chips are focused on high-performance GPUs.
Bitcoin: Can BTC hit $100,000 without a correction?
Bitcoin (BTC) price shows a slowdown in momentum as it set up a new all-time high of $73,949 on March 13. Considering the massive uptrend that BTC has been experiencing, a short-term correction is nothing to be concerned about.