Vechain price shows sign of distress as 8% drop gets underway in order to cool down overheated rally


  • 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    

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.


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