- VeChain price breakout below the 50-SMA will confirm the fall towards to $0.060
- The TD Sequential and RSI indicators confirm VeChain’s bearish thesis.
VeChain price recorded higher highs for seven consecutive days between July 21 and July 27. However, VET took a breather on July 28. It then stalled in a horizontal price action to end the week in the red on Sunday.
For the past few days, VeChain has been hovering between the 50-day Simple Moving Average (SMA) at $0.0813 and the 200-day SMA at $0.0981. After falling below the $0.060 psychological level on July 20, recovery began that saw VET rise by over 60% between July 21 and July 28. During this rally, the digital asset flipped the 50-day SMA from resistance to support and reversed the market momentum from red to green.
VeChain Price in a Horizontal Price Action
Although VET appears drab at the moment, sellers might stretch the bullish leg in the next trading sessions. A rectangle pattern appears to have been formed on the daily chart. This chart pattern is used in technical analysis to show that a significant move may occur in any direction. Although the rectangle pattern does not have a defined bullish or bearish breakout, other technical indicators predict a bearish move for the VeChain price.
VET appears to be battling immediate resistance posed by the horizontal axis of descending triangle pattern at around $0.0981 where the 200-SMA currently sits. For a bullish move to be confirmed, VET price must close the session above this level.
The VeChain price prediction is bearish as VET trades in the red around $0.0829 as bears focus on pushing the price lower.
Note that the odds for a bearish breakout will be high once VeChain breaks below the immediate support defined by the 50-SMA at $0.0815. If this happens, VET could re-test the major support at 0.0723 or the 0.060 psychological level respectively.
VET/USD Daily Chart
Technical Indicators Validate VET’s Bearish Thesis
A technical outlook from the TD Sequential and the Relative Strength Index (RSI) indicators validate VET’s possible bearish breakout. For example, TD Sequential indicator recently flashed a sell crypto signal in the form of a green nine candlestick on the daily chart. This implies that the VeChain’s bullish outlook is fading, albeit gradually as overhead pressure suppresses the VET price. The RSI’s downward movement towards the mid-line is a bearish signal.
VeChain Price Daily Chart
On the flip side, a session closure above the rectangle at $0.0981 where the 200-SMA sits will trigger buy orders that could see the VeChain price rally to explore the $0.115 resistance level or even higher towards the $0.12 psychological level.
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