- VeChain mirrored the cryptocurrency market’s widespread recovery to log massive gains
- But VETUSD pair has printed a technical formation combo that portends immediate losses
Market Up, VeChain Up
When the entire crypto market broke out from its bearish depths, VeChain’s VET didn’t stay back either. Instead, the token logged a whopping 61% upside against the US Dollar. From the low at $0.035 seen in February, the VET/USD token pair went on to reclaim positions in the $0.09 to $0.095 price range in the latest bullish bounce.
Holders of VeChain’s native crypto coin still are all smiles. Even with entering new positions at the beginning of the current year. The asset did encounter a near 90% drop from all-time highs near $0.3. But that hasn’t disturbed the gains of early holders/investors.
Also Read: Is it the right time to buy VeChain’s VET? These indicators hint so
But, But…
The VET/USD pair is indeed enjoying a bullish session. However, a combination of bearish formations spells doom for the VeChain token.
Also Read: VeChain Price Analysis: VET Looking to Drop to $0.079
As seen above, VET has printed a classic inverse cup and handle pattern on the daily chart. The pattern formation ranges from prices around mid-April to the recent price correction on June 26. Whenever tradeable assets show such a pattern on technical charts, a prominent correction in prices follows. While the latest rally in VeChain seems to negate the possibility of such an occurrence, it cannot be ruled out entirely.
Coinciding with the bearish inverse cup and handle is the bearish pennant formation. A correction in prices did follow the said formation, but further losses could be on the cards since it’s a part of the bearish combo. Sellers could take over and utilize the opportunity to books profits from the latest pump.
As A Matter Of Fact, They Are
After a week of considerable upside strength, VET is headed towards a correction. The 4-hour chart of the VET/USD pair shows an increasing concentration of selling volume. The MACD (Moving Average Convergence Divergence) indicator’s bullish wave is coming to an end.
VeChain token price has slipped below the 100-day moving average (MA) wave. And could establish contact with the 20 EMA hovering below pretty soon in the near term. The said move could drag VET prices down to the $0.82 level. If the selloff continues, the token could even revisit the $0.77 price level (marked by the dynamic 50-day MA support wave).
A move below that would bring severe frowns on the foreheads of early investors as well.
