- VeChain dives from highs around $0.26 amid widespread cryptocurrency losses.
- Losing the support at the 100 SMA could see VET spiral to $0.13.
- The TD Sequential indicator presented a buy signal on the four-hour chart.
VeChain is swimming in rough red waters a few days after hitting a new all-time high of $0.26. Initially, support was established at $0.22, which gave investors some semblance of stability. However, the celebrations were short-lived as bears swung into action on Thursday.
The tentative support at $0.22 and $0.18 did little to stop the losses. VEChain plunged to $0.13 before a reflex recovery sent it back to $0.18. At the time of writing, overhead pressure keeps rising, leaving support areas vulnerable.
VeChain Least Resistance Path is Downward
VeChain is exchanging hands at $0.16 after recovery hit a hurdle at $0.18. Bearish momentum is on the rise under the 100 Simple Moving Average (SMA), with bulls looking forward to securing support at $0.15 and t$0.13, as highlighted by the 100 SMA.
The prevailing technical picture is hugely bearish, as confirmed by the Moving Average Convergence Divergence (MACD) indicator. This indicator tracks the asset’s trend and measures its momentum. Traders can also tell when to buy the dip and sell the top using this indicator.
When the MACD line crosses under the signal line, it implies that you sell. The bearish outlook is accentuated by the indicator sliding into the negative region, as illustrated on the chart. On the other hand, traders are advised to buy when the MACD line strikes above the signal line. Note that the MACD does not identify oversold and overbought conditions. Therefore, it is used in conjunction with other indicators and chart patterns.
VET/USD four-hour chart
Looking at the Other Side of the Fence
The TD Sequential indicator has flashed a buy signal on the four-hour chart. This call to buy manifested in a red nine candlestick. It infers that sellers are losing traction, and buyers are likely to take the mantle. If validated, VeChain will post gains in one to four four-hour candlesticks, marking the beginning of recovery.
VET/USD four-hour chart
The same four-hour chart shines a light on the Relative Strength Index (RSI) likelihood of hitting oversold conditions soon. As VET becomes oversold, buyers will stream into the market to bring the price above the market value. A recovery will ensue as bulls eye liftoff toward $0.26.