- VeChain (VET) maintains its position above the 200-day EMA, signaling potential for an imminent breakout.
- Volume tends to decline during price drops, indicating long-term buying interest in VeChain (VET).
- Bitcoin corrections are likely to impact VeChain (VET), with short-term volatility expected before a notable rally.
VeChain (VET) holds promise for an imminent breakout owing to strong support trends and potential Bitcoin correlation.
VeChain’s Critical Market Juncture
VeChain (VET) is at an essential point in its market performance. Crypto analyst Cheeky Crypto recently discussed in a YouTube video that despite a 40% downturn since the Better Tomorrow Partnership announcement, VET remains resilient compared to other altcoins. Currently, the coin faces resistance at both the 50-day exponential moving average (EMA) and simple moving average (SMA).
Support at the 200-day EMA
Simultaneously, VET is garnering support around the 200-day EMA. If VET can secure and maintain this level of support, an impending breakout could occur. Conversely, failure to sustain this support might lead to further declines, potentially testing the 2.9 to 3.22 cent range.
Short-term Volatility and Long-term Potential
The recent price action of VeChain appears to be a typical corrective move rather than a sign of a long-term bearish trend. Short-term volatility is anticipated but the potential for an upward surge following this correction remains high.
Trading Range and Support Levels
VET is currently in a broad trading range, fluctuating between high and low prices. This pattern hints at a continuation of the prior trend and a corrective move to the downside. The next drop could find support between 2.9 and 3.2 cents. If this doesn’t hold, the next critical support level is around 2.5 cents.
Analyzing the Volume Profile
The volume profile offers encouraging insights into the current market condition. On a weekly basis, the decline in volume as the price falls is a positive sign. This weakening selling pressure shows there’s less propensity to sell and more interest in long-term buying, reinforcing the potential for strong support at the 2.9 to 3.2 cent range.
Bitcoin’s Influence on VeChain
Bitcoin finds itself in a similar position, and any correction in Bitcoin’s price is likely to influence VeChain as well. Despite this, some upward volatility is expected, with potential price increases above the 50-day EMA and SMA before any significant rally.
Conclusion
VeChain (VET) is at a pivotal point, looking to break out if it can sustain the 200-day EMA support. Despite anticipated short-term volatility, the long-term outlook remains optimistic, especially with a supportive volume profile and potential upside linked to Bitcoin’s movements. Investors should keep an eye on key support levels to gauge future direction.
