VeChain recovery to $0.13 is crucial to reignite VET bull market

VeChain price has recovered roughly 40% of the losses it has had since the flash crash this past Saturday. A strong recovery looked very likely, but recent price action has shown there is a struggle to move higher and that bulls may be losing faith.

VeChain price must regain $0.13 to prevent further bearish bias

VeChain price has struggled since the sell-off on Saturday. Despite returning to $0.095 from a low of $0.07, bulls have displayed little pressure to sustain VeChain’s current price range. The Tenkan-Sen at $0.098 is currently the primary near-term resistance. The Sunday, Monday, and current daily candlesticks have all been halted higher by the Tenkan-Sen.

The price level that bulls must return to and hold is the $0.13 value area. Doing so would position VeChain price above the Tenkan-Sen, Kijun-Sen, 2021 Volume Point Of Control and the 38.2% Fibonacci retracement. The only two resistance levels above VeChain are Senkou Span A and Senkou Span B.

Failure to move and hold above the Tenkan-Sen could trigger renewed selling pressure in the form of new short-sellers or buyers abandoning their positions for better opportunities. In that scenario, VeChain would likely fall to retest the 61.8% Fibonacci retracement at $0.082.

VET/USDT Daily Ichimoku Chart

However, the daily oscillators may prevent any near-term selling pressure. While the Relative Strength Index is in bear market conditions, it shows some signs of holding support at the first oversold level of 30. Additionally, regular bullish divergence is now present between the candlestick chart and the Composite Index. Finally, the Optex Bands remain in extreme oversold conditions are just now transitioning higher, giving VeChain price bulls some positive pressure.

Any close below $0.08 would likely trigger a flash crash to the $0.03 value area.