The VeChain price is attempting to turn higher from $0.7400. But is this too little, too late for VET or will it, at last, clear the downtrend?
VeChain is down 4.40% to $0.7526 in early Tuesday trading as the cryptocurrency market continues its poor run of form.
A seven-day decline of 13.05% has shaved over $700 million from VET’s market cap. At $4.8 billion, VeChain is now the 23rd ranked cryptocurrency by valuation, just ahead of Tron’s $5.55 billion market cap.
There have been several instances recently when it appeared the crypto market was recovering from its two-month depression. However, as has been typical of late, Bitcoin and Ethereum’s inability to hold on to gains has translated into weaker prices across the board.
The VeChain price, like many of its peers, has been trending broadly sideways. However, a restrictive downtrend has capped any attempt to climb higher in the last 6 weeks. And as long as this remains the case, VET is vulnerable to a short, sharp shock to the downside.
Looking at the daily chart, we can see that for the last 4 days, VeChain has been in a period of consolidation, on either side of $0.7600. Furthermore, a strong downtrend at $0.7700 from the 9th of June has frustrated the bulls and constantly rejected rallies over the last 5 weeks.
Notably, recently, there has been a significant pick up in trading volumes, which may point to accumulation from longs. However, as long as VET remains below the trend line, it will trade with a negative bias. And should the broader market succumb to further weakness, VET could target the 9th of May low at $0.0463.
That being said, if VeChain clears the descending trend line, there is potential for a rally to June’s $0.1529 high. Considering this is more than 90% above the last trade, it requires a reversal of fortunes for Bitcoin and Ethereum to be possible.
For now, bulls are likely to stay frustrated.
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