VECHAIN Token Price Analysis: VET Token price is trading at an interesting level, will it give a breakout?
- The price of the VET token is rising following the uptrend of the overall market over the past 24 hours.
- The token forms a descending wedge pattern over a daily time frame.
- The VET/BTC pair is trading at 0.0000111 with a decline of -0.11% in the market capitalization of the digital asset.
The VET token price, after failing to hold above the long-term demand zone, has broken it down and is now trading below it. The token forms a lower low formation and a lower high formation. This resulted in a descending wedge reversal pattern forming. The formation of the pattern occurred in the short-term demand zone, so there is a possibility of a reversal. Right now, the token is trading below all vital moving averages (20, 50, 100). The price of the VET token is showing a bullish trend over the past 24 hours and it has bounced off the demand zone with a three-soldier candlestick pattern. Currently, the token is trading in the middle of the Bollinger Band indicator. The price of the VET token attempted to break above the upper band of the Bollinger Band indicator, but it looks like the bears are still standing because the token failed to do so. Volumes have increased over the past 2-3 days. Investors should remain cautious until the price stabilizes and shows a one-sided trend.
MACD and Supertrend Undecided on Daily Hour Despite Recent Uptrend
The price of the VET token appears to be poised for a big move as the token is hovering around the short-term supply zone.
Moving Average Convergence Divergence (Bullish): The MACD indicates an uptrend on the daily chart as it gave a positive cross. The buyer’s signal line (blue) has crossed the seller’s signal line (orange) on the upside, indicating possible upward movement into the long-term supply zone of $0.0265 on the chart daily.
Supertrend: Price of the VET token, although it has been bullish for the past 24 hours, the super trend indicator suggests otherwise. The price of the VET token has yet to give a break of the super trending sell line and hence investors should wait for the price to break the $0.0260 price level.
The price of the VET token has broken the long-term demand zone on a weekly chart
The price of the VET token has been trending lower over the past month and resting in a long-term demand zone between $0.110 and $0.10 on a weekly timeframe. According to the price action, the token formed a double top pattern and eventually broke the neckline, resulting in a massive bearish rally.
Relative Strength Index: The RSI dropped massively after the bearish rally. Right now, the RSI curve is at 34.67 and continues to decline. For the price of the VET token to turn bullish, the RSI must break above the midpoint of 50. Until then, there seems to be no hope for bullish momentum.
Average Directional Movement Index: The ADX fell below 20 in the last month of trading, but as of now, due to the ensuing bearish rally in the overall market. Right now, the ADx curve has turned upwards suggesting a possible trend change, but for that price would have to give a breakout of the reversal pattern on a daily time frame.
The price of the VET token, as the price action suggests, is in a strong bearish trajectory. The recent uptrend in the overall market has not changed the trend, as the technical parameters show the same. It remains to be seen whether it breaks out of the descending wedge pattern or faces rejection and continues the downtrend.
SUPPORT: $0.020 and $0.023
RESISTANCE: $0.02650 and $0.02600
The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not supersede financial, investment, or other advice. Investing in or trading crypto assets involves the risk of financial loss.