VeChain VET's price rallied a whopping 98% from July 20 to August 8 and set up a swing high at a price of $0.111. However, the Momentum Reversal Indicator flashed a sell signal in the form of a red ‘one’ candlestick pattern on the 12-hour chart, suggesting that a downswing is likely.
This technical pattern formation forecasts a one-to-four candlestick correction. Therefore, investors can expect the VET price to retrace to the immediate support level at $0.0952. This move will offset the pent-up pressure and pave the way for sidelined buyers to jump on the bandwagon.
The resulting uptrend will likely push the VeChain VET price to slice through the 50% Fibonacci retracement level at a price of $0.106. A decisive 12-hour candlestick chart close above $0.106 will confirm the resumption of the ascent. In this case, market participants can expect VeChain VET to rally to the $0.116 and the $0.122 supply barriers.
While the price upswing is likely, things could go south if the support level at $0.0952 level is breached. This move will indicate a weakness among buyers and might allow the price bears to push through the subsequent barrier at $0.0902.
While buyers might still be able to make a comeback above the $0.0902 level, a breakdown of the August 3 swing low at a price of $0.0825 will invalidate the bullish thesis and open the path for further descent.
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