- VET’s breakout from the descending channel faced a $0.037 retest.
- Technical indicators and bearish sentiment signaled consolidation before any potential recovery.
As a seasoned crypto investor with battle scars from numerous market cycles, I have grown accustomed to the rollercoaster ride that comes with investing in digital assets. The latest development with VeChain [VET] has me both excited and cautious.
After escaping from its prolonged downward trend, VeChain [VET] has seen a significant drop. At the moment, it’s being traded at $0.03866, marking a decrease of 11.47% over the past 24 hours.
Initially, the surge indicated a promising change in direction. However, more recent trading activity seems to indicate prudence, since VeChain (VET) appears to be approaching a significant test at the $0.037 support line.
As an analyst, I find myself anticipating the upcoming sessions, as they may provide insight into whether VET will resume its bullish trend or extend its consolidation phase.
Can VET hold the $0.037 level?
The emergence from the falling trendline (descending channel) was a major progression in the case of VET. Yet, the subsequent return to around $0.037 underscored the market’s hesitation.
If this level holds, it could act as a foundation for the next move toward the $0.05 resistance.
Furthermore, the 50-day Simple Moving Average was approaching $0.02566 and the 200-day Simple Moving Average was nearing $0.02659, suggesting they might soon intersect in a golden cross pattern. This pattern is typically seen as a positive or bullish sign in financial markets.
Therefore, maintaining the $0.037 level is crucial to preserving upward potential.
What do technical indicators say?
At the moment of reporting, the Relative Strength Index (RSI) for VET stood somewhat lower than the overbought level at 63.03. This slightly subdued reading suggests a generally optimistic outlook, but it aligns with a recent price decline, which could signal a decrease in bullish momentum, potentially implying a period of price correction.
Meanwhile, the MACD’s bullish histogram was narrowing, suggesting momentum is fading.
The signal line was about to cross over in a bearish manner, potentially causing short-term pressure to push prices lower.
As a result, the technical indicators suggest that VET might hold its current position for more time before possibly moving upwards towards higher prices.
Are traders leaning bullish or bearish?
At the moment, the overall trader attitude seems to lean towards a more cautious approach, as suggested by the high Long/Short Ratio. This means that approximately 54.31% of traders have chosen to hold short positions, while around 45.69% are backing long positions instead.
This imbalance indicates that traders might not be fully confident about the quick growth potential, as they foresee more downward movement before any sign of recovery.
As a crypto investor, I understand that the next few trading sessions could see a significant struggle between bulls and bears around the $0.037 price mark. This level might serve as a crucial battleground, potentially shaping the direction of our digital assets.
What does development activity reveal?
Information from blockchain reveals a modest drop in VeChain’s development activity, currently standing at 4.89. Although this remains a robust figure, the decline from peak levels might raise doubts among investors about its potential growth trajectory.
If the development progress continues at a consistent pace, it may offer comfort to long-term investors, especially if the development activity remains stable or even shows improvement over time.
Read VeChain’s [VET] Price Prediction 2024-25
As a dedicated cryptocurrency investor, I’m keeping a close eye on VeChain. The key factor here is the crucial support at around $0.037. If this level manages to hold strong, there’s potential for a recovery that could push the price back up towards $0.05. This optimism is bolstered by the impending golden cross, a technical indicator suggesting an upcoming bullish trend.
Consequently, if the value does not hold at $0.037, there might be an elongated period of consolidation or even a decline in the near future. The upcoming days are crucial for determining VeChain’s immediate price trend.
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2024-11-27 09:12