The VeChain price has run into significant overhead resistance, threatening to derail the rally and drive VET back to July’s low. Vechain (VET) started September well, improving on the impressive performance in August to a three-month high of $1.5946 on the 6th. However, Evergrande’s default and China’s enhanced crypto ban shaved 50% off the price by the 29th.
On the last day of the month, cryptos exploded higher after Fed Chair Jerome Powell revealed he has no intentions of following China and banning cryptocurrencies. Bitcoin (BTC) surged 20% to $49,300, triggering broad-based buying across the complex. The VeChain price put on 43% from Thursday’s low to $1.1158 by Saturday. However, a rising trend line and the 200-day moving average rejected the rally and subsequently, VET is in danger of retracing substantially lower.
The daily price chart highlights several significant levels to watch. Firstly a rising trend line from the July low is seen at $0.1200. The trend combines with the 50-day moving average at $1.1165 and the 200 at $0.1197 to form critical resistance. Until VeChain climbs above $0.1200, it’s in danger of sliding below the 100 DMA at $1.008. In that event, an extension to last weeks low at $0.8136 looks likely. Furthermore, if the broader market reverses recent gains and tracks lower, the VeChain price could head back to the July lows around $0.055
The bearish outlook relies on VET trading below the trend and 200 DMA. On that basis, if the price clears $0.1200, the bearish thesis becomes invalid. Successful clearance of trend resistance and the 200-day opens the door to September’s $1.5946 high.
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