VET/USD upside limited by two consecutive bearish pennants and inverse cup and handle formations
Impending death cross spells doom for the VeChain token
3 Bearish Chart Patterns
JAIPUR (CoinChapter.com) — A solid bearish bias haunts the VET/USD trading pair. An inverse cup and handle and bearish pennant combo formations (on the daily chart) point to a significant drop in VeChain token prices in the near term. But how this scenario came to be?
The $0.14-$0.16 resistance range achieved “crucial status” ever since VET prices tumbled from all-time highs around $0.28. Thus, a retreat from the said price ranges confirmed the validity of the first bearish pennant formation.
Even though bulls attempted recovery from the $0.093 price mark towards mid-June, the effort was swiftly overpowered by aggressive selling pressure. As a result, VET/USD spot rates were dragged down to sub-$0.06 levels, courtesy of a giant red candle printed on June 21. An inherent bearishness was thus confirmed by an inverse cup and handle chart pattern.
But, bulls unfettered by the creeping bearish wave attempted another round of recovery only to fail again. Bears cut short the VeChain token’s recent rally beyond the $0.094 price point, confirming the second bearish pennant structure. Buyers couldn’t flip the $0.09-$0.10 resistance range to support.
Impending Death Cross Could Crash VET By 50%
Apart from the above bearish chart formations, an impending death cross occurrence could act as the final nail in the coffin for VET prices. Death cross formations on technical charts occur when the 50-day moving average (MA) wave crosses under the 200-day moving average (MA) wave. For VET/USD, it seems the same’s about to happen pretty soon.
In the event of a death cross, bears could deal severe damage to VET spot rates by dragging prices back to the $0.059 support. And a ‘lights out’ situation could truly take shape if the selling onslaught continues beyond the said price level. As a result, VET prices risk revisiting support levels down below the $0.035 level.
Although fundamental developments like adoption by the local Chinese government to impart normalcy to 300K+ COVID-19 recovering patients could keep hopes of a rally alive. But the hopes should not be high at all. If the crash to $0.035 does happen, traders are recommended to look for rebounding moves to $0.5 or $0.6 price levels to enter new positions.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
Note: Binance has relisted LUNA and UST tokens YEREVAN (CoinChapter.com) – Terra, the algorithmic stablecoin issuance platform that ranked...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.