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- VeChain (VET) holds above the 200-day EMA, suggesting potential for an imminent breakout.
- Volume decline during price drops indicates long-term VeChain (VET) buying interest.
- Bitcoin corrections will likely impact VeChain (VET), with expected short-term volatility before a significant rally.
VeChain (VET) is at a critical juncture in its market performance. As highlighted by crypto analyst Cheeky Crypto in a recent YouTube video, despite a 40% decline since announcing its partnership with the Better Tomorrow Partnership, VET has outperformed many other altcoins. The token is currently encountering resistance at the 50-day exponential moving average (EMA) and simple moving average (SMA).
Simultaneously, it is seeking support around the 200-day EMA. If VET can establish and maintain this support, a breakout could occur. However, a close below the 200-day EMA could lead to further declines, potentially testing the 2.9 to 3.22 cent range.
The current price action represents a standard corrective move, not indicative of a long-term downward trend. Short-term volatility is expected, but there is potential for a significant upside run following this correction.
VET is in a wide trading range, oscillating between high and low prices. This pattern suggests a continuation of the previous trend and a corrective move to the downside. The next leg down may find support between 2.9 and 3.2 cents. If this fails, the next support level to watch is around 2.5 cents.
An encouraging aspect of the current market condition is the volume profile. On a weekly time frame, the decrease in volume as the price drops is a positive sign. This lack of selling pressure indicates less appetite to sell VET and more interest in buying it on a macro scale. This suggests that support at the 2.9 to 3.2 cent range may hold, positioning VET strongly for the long term.
In comparison, Bitcoin is in a similar situation, and any correction in Bitcoin could cause VeChain to correct in tandem. However, there is an expectation of some volatility to the upside, with potential price spikes above the 50-day EMA and SMA before a significant rally.
The live VeChain price as of press time is $0.035805, with a 24-hour trading volume of $61,338,173, showing a 1.42% increase in the last 24 hours.
The post VeChain (VET) Tests Key Support Levels, Breakout Potential Looms appeared first on Coin Edition.