VeChain: Levels to Watch as VET Threatens Bearish Pattern Breakdown
VeChain’s VET encountered massive selling strength over the past months. This momentum is yet to halt. Furthermore, the price remained precariously balanced beyond the $0.021 support. Also, a bearish pattern emerged on the charts. VeChain’s analysis paints a bearish picture.
VeChain 12Hr Timeframe
VET hovered inside the range between $0.029 and $0.034 in May. Meanwhile, June’s initial weeks saw sellers overwhelming buyer bids around the $0.029 mark, kick-starting a southward move towards the $0.02 lows. Analysts plotted DIB retracement zones based on the downtrend’s swing low and high.
VET has tested the 38.2% and 50% retracement zones at $0.025 and $0.0266 as resistance. The altcoin didn’t breach either of the hurdles as the market structure stayed heavily bearish. Though VET surged to $0.026 from $0.021 as June ended, the alt lacked enough demand to trigger an upsurge.
The RSI (Relative Strength Index) climbed beyond the 50-neutral and flipped the level to resistance. The RSI confirmed the bearish bias behind the altcoin. The downside tendencies triggered a descending triangle formation. Meanwhile, the pattern has its base around the support at $0.0215.
VeChain 4Hr Timeframe
The 4hr chart revealed two crucial areas highlighted in red and cyan. The territories represent bearish and bullish order blocks, respectively. Also, the triangle pattern’s base provided support over the recent weeks. Generally, the triangle setups emerging after downtrends signal downtrend continuation. A southbound move would need a drop below the demand zone at $0.021 and retest the area as supply.
The 4hr recorded some mixed strength for VeChain. The Relative Strength Index has advanced and slumped to either extreme. The indicator seemed to protect the 50-neutral during this publication. Nevertheless, investors should watch for moves back below the 50-neutral.
The Aroon Oscillator revealed a dominant Aroon Up. Nevertheless, the price chart confirmed a lower peak on a downward form. That indicated a possible steady decline whenever the Aroon Down launches upswings. Meanwhile, the A/D remained flat, showing an absence of buying volumes behind VET.
Final Thought
Considering bearish tendencies on VeChain’s higher charts, the alt will likely resort to downtrends in the coming few days. Enthusiasts can execute short positions upon a $0.021 bearish retest.
Moreover, conservative traders interested in a massive error margin can set a stop loss beyond $0.023. the tringle’s height measures $0.005, so $0.016 can be a profit-take target for shorting sellers. They can also use the 23.6% extension mark at $0.0169.
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