VeChain VET price is down 7% today at the time of writing, unable to build on yesterday’s rally of 6%, creating a further deterioration of the overall price structure. The potential head-and-shoulders pattern manifests the weakening price structure and clarifies the levels to be monitored for VeChain direction confirmation.
On June 3, after reaching the apex of a symmetrical triangle pattern, VeChain VET price executed a breakout that was quickly followed by a bearish outside bar on the twelve-hour price chart, reflecting distribution. The VeChain VET setback occurred just above the intersection of the 50 twelve-hour simple moving average at $0.138, with the 61.8% Fibonacci retracement level of the May correction at a price of $0.140. The reversal soon was confirmed with a death cross on the twelve-hour chart.
VeChain VET price followed the twelve-hour reversal bar with a 20% decline into the May 8 low with a mild rise in trade volume, nearing the 50-day average. The ongoing VeChain VET rebound has been blocked by the 50 twelve-hour SMA at a price of $0.122, potentially forming the peak of the right shoulder of a head-and-shoulders pattern level.
The pattern symmetry level would be best served with additional price strength to get the right shoulder closer in line with the height of the left shoulder pattern. VeChain VET price could reach the 200 twelve-hour moving average at a price of $0.134 before printing the right shoulder peak, thereby bettering the pattern symmetry.
The head-and-shoulders neckline formation is now obvious and currently resides at a price of $0.100. A break below would trigger the pattern level and make VeChain VET price vulnerable to a measured move decline of almost 37%, placing VET at a price of $0.063 and below the May 23 low at $0.065. The left shoulder’s low price of $0.092 may present some support level.
VET price faces several technical challenges to overturn the deteriorating price structure. VET price needs to convincingly dispose of the 50 twelve-hour SMA at $0.121, the 200 twelve-hour SMA at a price of $0.134, and secure a daily close above the 61.8% retracement level of the May decline at $0.140.
VeChain VET price is swayed by the forces of the cryptocurrency complex and not by concerns specific to it. Thus investors should be prepared for uncertain price action moving forward until either the neckline breaks or VET price closes above the 61.8% retracement level.
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