VeChain: How this pattern could shape VET’s near-term trajectory
After finally breaking out of its pennant and invalidating the bearish tendencies on 23 May, VeChain (VET) bears resurged at the $0.034-level. This volatile break was quickly short-lived as VET dropped back into the chains of its Point of Control (POC, red).
The confluence of the EMA ribbons alongside the POC has created a stiff hurdle in the $0.03147-zone. Further retracements could find resting grounds at the $0.03018-mark.
The buyers still had a long way to re-navigate the price to claim an edge. At press time, VET traded at $0.0307, down by 1.81% in the last 24 hours.
VET 4-hour Chart
In revving up their efforts to boost the selling pressure, VET sellers provoked multiple rallies while keeping a consistent control on the alt’s peaks. The altcoin lost over 73% (from 31 March) of its value and plunged toward its 15-month low on 12 May.
Since then, the buyers made a visible effort to test the resistance of the EMA ribbons in the 4-hour timeframe. Despite their successful efforts in reducing the gap between the EMA lines and finding a spot above them, the sellers yet again prevailed.
With the Evening star candlesticks playing a spoilsport, the 20 EMA tilted slightly toward the south. In the last two days, the fruition of the bearish efforts into a down-channel (white) retracement. VET could go on to test the lower trendline of the channel before finding any pullback strength.
The buyer should be wary of supporting the $0.03-zone by injecting more volumes to prevent fallout. The current buying pressure could at most keep up the chances of a tight phase (near its POC) alive.
For the last three days, the bearish RSI struggled to break open the resistance of its equilibrium. A potential fall below the 42-44 range would open a gate for further short-term sluggish movements on the chart.
Further, OBV witnessed a bearish divergence with price over the past day. To sustainably close beyond the EMA ribbons on the chart, the traders must watch out for bullish signs on the OBV.
Looking at the current down-channel setup and the sturdiness of the POC resistance, VET could see a continued patterned oscillation. Any close below the $0.03018-zone would indicate the possibility of a further downside. However, a bounce back from this support on high buying volumes would position VET for challenging the bonds of its EMA ribbons.
Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.