In this new Wednesday analysis, let’s take a look at the price of VET, from the VeChain project. Having exploded in 2021, the situation is now more complicated. Will the end of 2022 be conducive to a rise in the price? Or will the price continue to stagnate as the macroeconomic situation improves? Without further ado, let’s head straight to TradingView.
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The VET is now on a major key level
After a significant rise in 2021, the VET was in a downtrend, it failed to post a new all time high last November. Since early December, the MA100 has been lost along with the trio of EMA 13/25/32. These moving averages, allowing the trend to be determined in different ways, have not been included. Moreover, a false breakout took place last August. VET got rejected at resistance at $0.0335 to get back below the trio EMA. Thus, although the underlying trend is bearish, we can see a lateralization of the VET for several months.
Indeed, since last May, the asset has been moving between its resistance at $0.0335 and a major support at $0.0219. As long as this level is not broken down, nothing is lost. However, the more it is retested, the greater the probability of a breakout becomes. So, what could happen if VET breaks below $0.0219? It would reintegrate the range that took place between July 2020 and January 2021. In this context, a return of the price to 50% of Fibonacci at $0.0137 is clearly possible.
To hope for a rebound of greater amplitude on the VET, it will be necessary to overcome the resistance at 0.0335 dollar. In this framework, the asset could look for the MA100 3D which is currently in confluence with former support at $0.0445. Will it get there? For the moment, nothing is decided, it is quite possible to have a continuity of the range in which the VET evolves for several months. It is not impossible for the configuration to last for several months.
A compression is underway, which direction will the price take?
On the daily scale, the price movements being more detailed, we can more easily determine the direction that the course could take over the next few days. Currently, the VET is fighting with the trio of EMA on which it has been rejected several times since the second half of August. If it manages to hold above it will likely look for resistance at $0.0251/$0.0255. This is in confluence with the daily MA100, a key level that could signal a trend reversal in the event of a breakout. In this context, we can consider a first objective at 0.0289 dollars.
On the other hand, in addition to a possible continuity of the range in which the VET fits, it will be necessary to carefully monitor the support at 0.0219 dollar. If there is an acceptance of the price below this level and the price fails to recover it, the signal for a new bearish run will be clear. In this context, the objective stated above should be kept in mind if you have a short position. At the moment, it is a complex situation. Entering in the middle of the range is not the best option, it is better to wait for a return of the price on the resistance or the support.
Here we are at the end of this technical analysis of VET, the token of the VeChain project. Let’s hope that October will be a little more volatile for this asset which, on the surface, seems to be asleep. Watch the key levels identified in the analysis and determine as soon as you can plan whether you are a trader or a long-term investor. In addition, it will be necessary to take into account the macroeconomic situation and the dynamics that Bitcoin and Ethereum will take. For the moment, it is difficult to envisage a bullish explosion of the asset if the rest of the market is, in parallel, completely in the red.
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