After 60% crash, can Vine Coin rebound 40%, rally to $0.10?

Key Takeaways 

Vine Coin has consolidated losses above $0.05 for the past few days. Is it the springboard for a recovery? 

Vine Coin [VINE] has stabilized above $0.05 after heavy profit-taking in August that erased the entire +300% upswing in July. 

In the past few days, the altcoin has consolidated between $0.5 and $0.10, forming a base that could front a recovery in case of a positive market sentiment. 

Is a rebound on the cards?

On the price charts, the price bounced off the trendline support after the 60% dump in August, marking the level as a key demand zone.

This was above $0.05 price level and could support the recovery thesis if the trendline is defended. 

However, bulls had to clear the $0.08 to advance to the next crucial target at the 50% Fib level at $0.01.

A potential 40% gain could be possible if bulls could manage to clear the overhead hurdle at $0.08 and march to $0.01. 

The above move could be confirmed if trading volume cracks the resistance (white trendline) on the OBV. Otherwise, the VINE could continue to consolidate losses above $0.05. 

A break below $0.05 and the trendline support would invalidate the bullish thesis. 

That being said, the liquidation heatmap also marked out $0.08 as a key level that could set the pace for recovery.

The zone (marked yellow) had significant short liquidations that could attract price action. A short-squeeze at the level could push VINE higher under positive market conditions. 

Overall, after a 300% explosive upswing in late July, VINE erased nearly all its gains in August. 

But there appeared to be seller exhaustion, and the altcoin was consolidating losses above $0.05. This could set up the stage for a strong VINE rebound towards $0.1, especially if buyers step in.  

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion