- 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.
Also Read: VeChain’s 60.85% bullish bounce risks total wipeout—here’s why?
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.
Also Read: Death Cross Looms Over VeChain (VET) Market; What to Expect?
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.
