Vechain Token Price Analysis: VET Token Price is Resting at the Demand Zone, Will it Bounce Back?

• Vechain Token Price is trading along the long-term demand zone at $0.0474.
• The token is forming a falling wedge pattern on a daily time frame.
• The pair of VET/BTC is trading at 0.00000121 BTC with an increase of 1.69 % in the market cap of the digital asset over the past 24 hours.

VET token price is in a downtrend daily and faces continuous rejection of the green trendline, acting as a long-term supply zone. VET token price is trading along the demand zone of $0.042 on a daily time frame. The token forms lower low and lower high formation on a daily time frame. At present, the token is resting at a long-term demand zone on the weekly time frame, and thus if it can break out of the green trendline on the upside, the token can be seen moving upside. But if the token breaks the demand zone, it can fall rapidly. Currently, the token is trading below all the crucial Exponential Moving Average (20, 50, 100) and could face rejection moving upwards.

VET token price has been trading in a small range from past trading weeks, and thus breakout on either side will trigger the big move. The token is currently trading at the middle band of the Bollinger band indicator. The Bollinger band’s range has become narrow, indicating an impulsive move in the upcoming trading days. Volumes have decreased, and thus momentum on any side will continue for a long time due to less volatility.

MACD and Supertrend are showing bullish signs on daily time frame

VET token price is resting at the long-term demand zone, and the technical parameters show neutral to bullish signs on a daily time frame.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s (blue) signal line crossed the seller’s (orange) upside. If the token breaks out of the green trendline, it can reach $0.068 and above. It is possibly making new highs if the momentum continues.

Supertrend: Recent bullishness in the cryptocurrency market has not affected the super trend indicator. The sell signal from the indicator is still intact as it broke down the supertrend buy line with a strong bearish candlestick pattern. If the token price breaks out of the red supertrend indicator line, the indicator can be seen giving a buy signal. Until then, an investor should remain cautious.

VET token price is forming falling wedge reversal pattern on daily time frame

VET token price is in a downtrend on a larger time frame, and recently it formed a bullish reversal chart pattern. Once the token breaks out of the pattern, it could trigger a massive move on the breakout side.

Average Directional Movement Index: ADX has been continuously dipping from the past trading days, and recently, it slipped below 20, as the token faced rejection at $0.05529. The ADX curve is seen recovering and has turned upwards at present. Thus indicating a halt in the movement of the price and possible change in the structure of the price movement.

Relative Strength Indicator: RSI trades at 43.21 as the token forms a bullish reversal pattern. The RSI curve is nearing the 50 halfway mark, and thus once it crosses the 50 mark, the token can be seen moving up, possibly giving a breakout of the falling wedge pattern. The RSI curve has also gone past the 20 SMA, indicating a bullish momentum for the upcoming trading days.

Conclusion 

As per the price action, VET token price is forming a falling wedge bullish chart pattern. The technical parameters are also suggesting bullish momentum for the upcoming trading days. The investor should be cautious until the token breaks out on either side. It remains to see if the token breaks on the upside or bears trample the price down.

SUPPORT: $0.04440 and $0.04644

RESISTANCE: $0.05571 and $0.07155

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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