With a bearish trend in motion, the contracting trend in Vechain (VET) forms a falling wedge. Will this wedge boost the next recovery run?
As the crypto market remains uncertain, Vechain, an altcoin with a $1.672 billion market cap, reaches a crossroads. Although it’s currently trading within a contracting pattern and has formed a death cross, there are signs that the VET price might rebound as network health improves. Could this set the stage for a breakout rally from a falling wedge pattern?
Vechain’s Wedge at Play
The VET price action reveals a falling wedge pattern in the daily chart. The Vechain price is currently trading at $0.20, following yesterday’s 3.78% drop.
As the declining trend continues, the altcoin approaches the bottleneck area of the converging trendlines. This increases the possibility of a high-momentum move, but the trend direction remains uncertain.
Over the past week, the VET price action has remained highly indecisive, with a 0.86% drop this week. However, the week prior was a definitive bearish week, with a 16.71% drop, leading to a bearish engulfing candle.
Currently, the psychological support at $0.20 is under duress as the broader market grows volatile.
VeChain Network Growth
According to VechainStats, the total number of accounts on the Vechain network has increased from 2.16 million to 4.183 million in the past year. With an almost 100% surge, the network’s accounts have a healthy development.
Furthermore, the active accounts over the network registered a spike of 160,264 on September 3.
Will Vechain Sustain Above $0.20?
With the support trendline holding the price for the third time in the past two months, the daily RSI line reveals a bullish divergence. However, the post-death cross, the 50-day EMA, and the 200-day EMA move in a bearish alignment.
Vechain’s next support levels below the support trendline are at $0.01922 and $0.0175650. On the bullish side, the VET token price can find resistance near the 50-day EMA at $0.24, siding with the overhead trend line. Beyond this, the 200-day EMA stands at $0.028 as the next target level.
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Source: https://thecryptobasic.com/2024/09/06/vechain-struggles-at-0-20-can-network-growth-propel-a-recovery-to-0-24/?utm_source=rss&utm_medium=rss&utm_campaign=vechain-struggles-at-0-20-can-network-growth-propel-a-recovery-to-0-24