The market experienced a sudden price drop on 18 April as Bitcoin’s price fell close to $51k. The altcoin market mirrored this loss and saw bearish volatility making its way. Vechain, the 17th largest altcoin with a market capitalization of $11.25 billion, was witnessing an almost 10% drop in the past day’s time.
At the time of writing, VET was being traded at $0.2124 and was at a crucial price point.
VeChain 4-hour chart
Source: VETUSD on TradingView
The above chart of VET indicated the upwards journey the price had seen earlier in the week. However, the sudden volatility sent it back to the support at $0.1678. Although the price jumped higher from this point, the current price level is still at one of the crucial supports.
$0.2124 has been a strong support for the asset’s value and currently, it has been testing this level. If the market can hold on to this level, we may see the price consolidate further. However, if the price fails to hold on to this support, we may see another visit to $0.1678 which will be a 20% dip in price.
Reasoning
The volatility in the market has been high and this was indicated by the diverging Bollinger bands. This volatility gained momentum with the rising price of VET and also helped in escalating the sudden drop that was visible.
The signal line also moved higher to indicate the falling value of VET, but as the price recovered, the signal line was once again pushed under the candlesticks.
Meanwhile, the 50 moving average acted as additional support at $0.2124 and may move above this level if the price continued to build. However, the relative strength index was indicating that the asset was already close to the overbought zone, which meant that the buying pressure was high.
Consolidation may help the value of the altcoin gain stability and a reducing momentum may help this cause. The awesome oscillator was noting that the price momentum had dropped. However, with the price still maintaining its hold to immediate support, the lack of momentum could aid the market to establish a stronghold at the current price.
Conclusion
The current VET market was indicating a strong trading activity at the current price level. Although selling pressure could push the price down to $0.2124, the buyers in the market may try to maintain the current price.
