VET Technical Analysis: Bulls Struggling To End The Declining Trend
The VET price action displays a bullish failure to break above the declining trendline in the daily chart. However, the recent improvement in the market conditions supports the possibility of the $8 breakout to end the bearish trend. So, is this a perfect buying opportunity in VeChain?
Key Points:
Source-Tradingview
VET Technical Analysis
The VET price action maintains a declining trend after the bearish breakout of $0.026, generating an effective resistance trendline. Additionally, the falling VeChain prices project a descending triangle with the base level at $0.021.
The 50-day EMA moves along with the resistance trendline, increasing the bearish pressure to prolong the downtrend and trap the momentum. Yesterday, the price action formed a long-tail candle from $0.021, accounting for a 2% jump, projecting a potential breakout.
However, the increased supply inflow at the resistance confluence of the 50-day EMA and the bearish trendline limits the breakout possibility.
Considering the demand increases for VeChain with the inauguration of a new headquarter in Ireland on 11th October, the bull cycle might end the correction phase. In a tweet, the company plans to expand in Europe by hiring 100 developers to increase the growth rate.
If the buying pressure sustains, the VeChain prices will exceed the resistance trendline to reach the overhead resistance of the 100-day EMA close to $0.026.
Conversely, the bullish failure to end the declining trend will inevitably lead to a bearish breakout of $0.021, signaling a selling opportunity. In such a scenario, traders can quickly expect a 10% fall.
Technical Indicator
The RSI slope projects a lateral trend despite the descending triangle in the technical chart reflecting a bullish divergence, adding points to the breakout thesis. Moreover, as the bullish histograms resurface, the MACD and signal lines avoid another bearish crossover.
Therefore, the technical indicators highlight the increasing demand for VeChain in the recovering market. As a result, the VET technical analysis signals a buying opportunity at the current market price.
Resistance levels- $0.026 and $0.030
Support levels- $0.021 and $0.018
