VeChain (VET) is currently facing significant challenges, trading at $0.02139 and showing a 1.79% drop in the last 24 hours. The bearish momentum has been relentless, with key technical indicators pointing to further struggles ahead unless a reversal occurs. Let’s dive into the latest patterns and indicators that may shape VET’s next move.
Support and Resistance Levels
VeChain is hovering just above its major support level at $0.0203. If this support fails to hold, the next potential downside could see VET dipping toward the psychological $0.0180 mark. On the flip side, the resistance levels at $0.0242 and $0.0288 are key hurdles that need to be reclaimed for a potential bullish recovery.
Also read: Ethereum Poised for 250% Surge as Market Shifts Amid China’s Tariff Impact
Key Chart Patterns
- Descending Triangle: This classic bearish continuation pattern suggests a likely breakdown if VET breaks below the $0.0203 support level. The formation of this pattern suggests further downward pressure if the selling continues.
- Falling Wedge: A potentially bullish reversal pattern is emerging. However, confirmation through a breakout is still pending, making it uncertain whether a shift in momentum will occur.
- Bear Flag: After a steep decline, the bear flag pattern indicates that the sideways consolidation could resolve to the downside, adding to the bearish outlook for VET in the short term.
Technical Indicators
- Bollinger Bands (20, 2): The price is trading near the lower band, signaling oversold conditions and heightened bearish pressure. The wide distance between the bands also hints at increased volatility.
- MACD (12, 26): The MACD remains negative, continuing to show bearish momentum with no immediate signs of a bullish crossover.
- EMA (20): VET remains below the 20-day exponential moving average (EMA), reinforcing the prevailing downward trend. A break above this moving average is necessary for a potential shift toward bullish momentum.
- RSI (14): The Relative Strength Index (RSI) is in the oversold region around 30. While this could signal a possible bounce, historical trends suggest that VET could remain oversold for an extended period during strong downtrends.
Outlook
With the dominance of bearish patterns and technical indicators, the outlook for VET remains weak in the near term. If the support at $0.0203 is lost, a further decline toward $0.0180 could be on the cards. However, should the falling wedge break to the upside with increased volume, a short-term rally toward $0.0242–$0.0250 could unfold.
Given the current low trading volume, a significant reversal would likely require a surge in demand and confirmation from indicators like MACD and RSI. Traders should monitor the $0.0203 support level closely and watch for any divergence in the RSI or a bullish crossover in the MACD.
As of now, VeChain finds itself at a critical juncture, and caution remains essential as bears continue to dominate the market.
