🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

VeChain Technicals Spell Trouble For The Bulls

Published 03/31/2021, 01:14 AM
VET/USD
-

VeChain (VET) is trading at extreme overbought conditions, indicating that a correction is near.

Key Takeaways

  • VeChain is down over 10% from its recent high of nearly $0.10.
  • The price action seen since the beginning of the year suggests that VET is poised to retrace to $0.06 before it bounces back.
  • A technical indicator further validates the pessimistic scenario.

A crucial resistance level has rejected VeChain’s uptrend. Now, VET seems primed for further losses as several sell signals pop up.

VeChain Flashes Multiple Sell Signals

VeChain posted massive gains throughout March, rising by nearly 150%. The coin opened the monthly trading session at a low of $0.04 and surged to a new high of nearly $0.10 on Mar. 22.

A wave of profit-taking hit VET after the peak, pushing its market value down by more than 23%. Although prices have partially recovered, the 20th-largest cryptocurrency by market capitalization could be bound for further losses.

VET has been contained within an ascending parallel channel since December 2020. Each time VET has risen to the channel’s upper boundary since then, a rejection occurs that pushes prices to the lower edge. From this point, it tends to rebound.

If this price action repeats, the recent rejection from the resistance trendline might be significant enough to push VeChain towards the channel’s lower boundary at $0.06 before it bounces back.

VET/USD Daily Chart

The Tom DeMark (TD) Sequential indicator adds credence to the pessimistic outlook. This technical index presented sell signals in the form of nine green candlesticks on both the weekly and 3-day charts.

The bearish formations forecast that VeChain will retrace for one to four candlesticks before the uptrend resumes.

VET/USD Weekly Chart

Despite the grim worst-case scenario, the cryptocurrency market’s unpredictability means a bullish market outlook is not out of the question. Bull investors push VeChain above the recent high of nearly $0.10 to avoid incurring further losses.

Such an upswing would likely generate FOMO among market participants as VET will be entering into price discovery mode. Under such unique circumstances, this cryptocurrency could advance towards $0.11 or even $0.12.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.