The VeChain price action suggests the worst may be over as buyers emerge at a critical level to keep the bull market dream alive.
VeChain (VET) is trying to string together a fourth consecutive day of gains on Tuesday. The VET token is marginally higher at $0.1210 in early Asian trade, extending the bounce from Sunday’s low to 16%. However, despite the bounce, VET is around 36% below the six-month high set earlier this month and trading at a 57% discount to May’s all-time high. As a result, VeChain’s market cap has slid from $12b earlier in the month to around $7.8b at the current level, ranking it the 27th-largest cryptocurrency, behind Elrond.
November has been a tale of two halves for the cryptocurrency market. At the start of the month, the combined value of the market reached a record high of $3 trillion. However, the euphoria surrounding the Bitcoin ETF approval gave way to several bearish developments. A strong US Dollar, talk of an Indian Bitcoin ban, and the arrival of the Omicron covid variant have wiped almost $400 billion from the market. As a result, VET broke down below the major moving averages and almost perfect tagged trend support on Sunday.
The daily chart shows the VeChain price bounced perfectly from trend support at $0.1040 on Sunday. Subsequently, VET has climbed above the 200-DMA at $0.1127 and is approaching the 100-Day at $0.1253. Successful clearance of the 100-DMA should encourage momentum towards the September high of around $0.1600.
However, a close below $0.1227 brings the trend support back into focus. Furthermore, a break of the trend will be highly bearish for the price. In that event, a logical downside target is the September lows around $0.0894.
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This post was last modified on Nov 30, 2021, 01:12 GMT 01:12