- A combination of bearish symmetrical triangle formations signal a 23% drop in prices for the VeChain token
- An impending death cross could add more fuel to the fire
JAIPUR (Coinchapter.com) — VeChain’s native cryptocurrency VET token is down 75% from its all-time high of $0.28 logged on April 17 this year.
The asset that underpins a global supply-chain revolutionizing blockchain has registered multiple corrections in the last three months. However, the pain isn’t over yet. Bearish technical setups show that VET could correct downwards by another 23%.
A combination of triangle formations (bearish ascending and symmetrical), one printed just after the May 19 crash and the other precisely a month later (after June 20), has limited all recovery options for VET. After the first triangle breakout, VETUSDT spot rates declined by 60% ($0.152 to $0.06). The drawdown was approximately equal to the length of the triangle’s side parallel to chart candles.
VeChain’s token has already resumed its downside breakout after the symmetrical triangle formation. Consequently, the VETUSDT pair has incurred almost 20% losses falling from $0.085 to $0.069. Furthermore, the length of the triangle’s candle-parallel side amounts to a 40% loss in price; thus, extrapolating the rest of the correction trajectory points to a retest of support near the $0.054 price level.
A Death Cross For VeChain
The bearish technical setup that makes the above potential downside movement resoundingly possible is an impending death cross. Death crosses are technical setups where the 50-day MA and the 200-day MA waves overlap, in turn creating a bearish crossover that precedes significant downside corrections.
In VET’s case, a death cross formation is around the corner. And could further aggravate selloffs initiated after the symmetrical triangle breakout. Thus, a 23% correction from current price levels looks near imminent.
Traders who are short on VET can book profits around $0.0543 support level. Investors who have been buying the token since 2020 Q4 or January this year also stand decent chances of securing gains should VET drop to the said support.
On July 12, the VeChain team announced Vexchange 2, version 2 of Vexchange, the first-ever decentralized exchange on the blockchain. But the news failed to cast bullish shadows on VeChain’s token price.