Although the VeChain price is moving higher until it clears the considerable overhead resistance, sideways dominate the action. VeChain (VET) is trading at $0.133 (-2.04%), higher by 26% in the last four weeks and +600% year-to-date. VeChain’s current market cap sits around $8.6 billion, ranking it the 24th most valuable cryptocurrency behind Axie Infinity (AXS).
Chinese supply-chain platform VeChain surged almost 2,000% in the first four months of 2021. By mid-April, the VET token reached a record price of $0.282 and a market cap of $16.78 billion. However, like many altcoins, VeChain took considerable losses in the second quarter, reaching a low of $0.055 in July. Since then, the price has been trending broadly higher, although certainly not in a straight line. And despite rallying 140% from the July low, VeChain is around 15% below the highest price in September.
Encouragingly, the price has been climbing steadily over the last month. Subsequently, VET is above the key moving averages and approaching a test of horizontal resistance at $0.157. Which, if cleared, could set the VeChain price on a course towards $0.200.
The 200-Day Moving average at $1.126 lines up with a rising trendline to provide significant price support. As long as VET respects the average and the trend, a test of $0.157 is likely. I would consider successful clearance of $0.157 on a closing basis extremely positive. And in that event, an extension into the $0.200-$0.250 range is achievable.
However, the Relative Strength Index of 56.41 is turning lower and diverging from the rising price. Furthermore, trading volumes are incredibly light and not indicative of accumulation, and therefore, the signals are mixed at the moment. Nonetheless, as long as VET is above the 200-DMA, it should trade higher. On that basis, I am cautiously bullish above $0.121 with an initial price target of $0.157. However, a close below $0.121 invalidates this view and suggests short-term momentum is turning bearish.
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This post was last modified on %s = human-readable time difference 04:47