Jaipur (CoinChapter.com) — From what it appears, bears are about to deal a world of damage to VeChain’s VET token prices. The technical setup looks bearish. And the VET/USDT trading pair might make a trip down south to the $0.079 price level. Let’s see why.
VET Holders Looking To Sell En-Masse?
On the daily chart of VET against USDT, buying volumes are nil. Sell volumes, on the other hand, have stacked up one against the other. Since the crash on May 19, sellers have been more active than buyers. Sensing a further correction in prices, VeChain token holders have lined up to offload their holdings.
This trend is expected to pick pace in the near term. This means bulls can either keep holding for the next upside or else join the bear gang.
Correction Below 100D MA With Upcoming Bearish MACD Crossover
Due to the aforementioned proliferation of sell volumes, the VET/USDT trading pair has slid below the crucial 100-days moving average indicator.
The VeChain token risks testing support near the $0.079 price level (200d MA) shortly. The bearish divergence displayed by the MACD (Moving Average Convergence Divergence) indicator confirms the beginning of a significant selloff.
The RSI (Relative Strength Indicator) value, although bottomed looks weak, and is on the verge of plunging further on the back of rising sell volumes.
Fundamental Developments Not Helping Much
On the fundamentals front, the VeChain Thor blockchain was upgraded to version 1.5. But that has not done much to salvage the token from bearish sentiment. In fact, the selloff accelerated on the day of the announcement, i.e., June 7.
Also, a few minutes back, the VeChain team announced the acceptance and publication of its PoA linked AlphaBlock technical paper (prepared with the University of Oxford) by the ACM. ACM is the world’s largest educational and scientific computing society focused on leading-edge publications.
VET prices have remained bearish nonetheless. With the current market sentiment not looking optimistic, it remains to be seen when VeChain’s token will find its bottom.