The VeChain price has run into an important area of confluent support levels. This is either very promising or very worrying for the VET bulls.
VET is lower by -4.07%, trading at $0.0843 in early Tuesday trading.
VeChain was created to solve many of the issues facing the global supply chain. Therefore, given the logistics industry’s issues over the last 15 months, its native token VET should be perfectly positioned to do well.
And of course, like many of its peers, it did at the start of the year. Although presently, even after adding 40% from the June 22nd low, the VeChain price is still 70% below its April $0.2819 all-time high.
Yesterday, my colleague highlighted some medium-term bearish factors that are weighing on the price. However, this morning, I want to see how these are playing out in real-time.
The 2-hour price chart shows that after bottoming out on June 22nd at $0.05891, VET gained 62% in the seven days that followed. Although. It’s presently close to 12% lower since the 29th of June’s $0.09558 high.
Moreover, the price is exerting downside pressure on a rising trendline and a horizontal support level.
Firstly, the rising trend, which forms the lower end of an ascending parallel channel, is around $0.08380. VET has been clinging to this trend support for the last 10 hours.
Furthermore, a horizontal support level which can be traced to the 30th of June low, sits just below the trend line, at $0.08140
VET did penetrate the uptrend earlier this morning but bounced from the horizontal support, reclaiming the rising trend. The slip below support did encourage increased trading volume. Which could mean some longs stopped out of positions, which may be a positive sign; as long as the price recovers.
However, it also indicates that a drop below the horizontal support could bring more liquidations.
Therefore, I would view this short term uptrend as significant and a decisive break below the trend, and the horizontal line, would indicate that the next leg is lower for VET.
However, there is a chance that when the US traders return this morning, they will bring some buying power with them. Should VET hold the support today, I would consider this a positive sign. Therefore, today’s closing price could be key in deciding the immediate prospects for the Vechain price.
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