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


Share:
  • 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.


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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP