- VeChain price must overcome the 50-day and the 200-day SMA in order to rise above $0.90.
- The SuperTrend indicator shows that VET’s bullish thesis could be invalidated in the near term.
- VeChain must hold on to the support reinforced by the 20-day SMA.
VeChain price has rallied 37% above the June July 20 low at $0.057 based on the current price. VET is trading in the green for the seventh day running, a sign that bulls are committed to reversing the last week’s losses. However, the easy job seems to be over as VeChain now faces a commanding resistance that will slow down the bullish momentum in the near term.
Can VeChain Price Violate $0.090?
VET is currently hovering at $0.077 having lost approximately 9.3% over the last 24 hours according to CoinGecko. The rally from the July 20 at $0.057 low reached 67% at yesterday’s $0.093 high before VeChain price being rejected by the 200-day Simple Moving Average (SMA) which is currently at $0.095. VET price reversal can be attributed to the upward hurdles posed by the 50-day SMA, $0.090 major resistance level and the upper SuperTrend line. The 200-day SMA reinforces these levels of resistance as seen on the daily chart.
VeChain price remains bullish on the four-hour chart in a market that is largely bullish at the moment.
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On the higher side, for VeChain price to overcome the $0.09 resistance, it has to close the day above the 200-day SMA at $0.095. If this happens, VET will have built a formidable bullish momentum and the only remaining thing will be flipping the SuperTrend from a sell to a buy signal. If this happens, VeChain price could retest the June 21 high at the $0.1 psychological level.
VeChain Price (VET/USD) Daily Chart
How Can The VET Price Rally Be Invalidated?
The VET price bullish momentum could hit a hiatus in the short term of investors continue to cash in on the profits after a remarkable recovery. Note that VET’s immediate support is reinforced by the 20-day SMA at around $0.078, a support that was successfully held between June 21 and June 29.
Note that VeChain price daily close below $0.078 will invite the creation of a double top pattern towards the July 20 low at $0.057. A failure to hold the support will see VET target lower prices and confirms yesterday’s retraction as seen on the four-hour chart.
The bearish narrative is reinforced by the crypto signal by the SuperTrend indicator which is currently sending a sell signal. Note that as long as the VET price remains under the SuperTrend line, the bearish thesis is set to be validated.
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Nancy Lubale
