VeChain Price Forecast: VET Sweeps Through Recovery Target, But Pullback Looms

Last Updated August 20th 2021
2 Min Read
  • Vechain price outperformed the falling wedge recovery target at $0.4.
  • Closing the day below $0.14 could be detrimental to the uptrend and lead to a gains-trimming event.

VeChain stretched the bullish leg higher, a move that saw a breakout target from July achieved. Following a nearly 12% growth in 24 hours, VET is teetering at $0.13. The $8.7 billion crypto briefly stepped above $0.14 but slowed down the uptrend. According to CoinGecko, VeChain has attracted a trading volume worth $1.2 billion across all exchange platforms.

Why VeChain Risks Another Retreat

Vechain formed a falling wedge pattern on the daily chart during the freefall from $0.285, an all-time high traded in May. The selloff dominated the market, with investors left bleeding to the recent support at $0.056 in July.

As expected, the wedge pattern gave way to a breakout, with a 120% target of $0.142. As the recovery began to take root, VeChain bulls focused on erasing the losses incurred. Earlier this week, VET climbed above $0.142 but suddenly stopped at $0.146.

Realize that the daily chart shines a light on the short-term support established at $0.11. Although a rebound is underway, it could be a challenge rising above the more two-month high at $0.146. Thus, a daily close below this level may see overhead pressure intensify as seller put their feet forward.

VET/USD Daily Chart

 VET/USD Daily Chart 082021

The 100 Simple Moving Average (SMA) has crossed below the 200 SMA, suggesting that the downtrend could gain traction in the near term. Note that a golden cross would take time before coming into the picture, mainly with the 50 SMA catching up to the 200 SMA.

Data by Santiment shows that the number of VET-related mentions on different social media networks surged over the last 24 hours. The rising chatter around the token allowed VeChain to stretch the bullish leg to $0.146, bolstered by increased investor interest.

However, increased attention is not necessarily a good sign for the continuation of the uptrend. When prices pump, and the crowd starts paying attention, a dump usually follows shortly after.

Therefore, VeChain may fail to keep the uptrend intact and perhaps pull back to $1.1. The 200 SMA and the 100 SMA are in line to prevent a massive dip.

VeChain Social Media Mentions

 VeChain Social Media Mentions 082021

On the other hand, the Moving Average Convergence Divergence (MACD) indicator shows that buyers still have the upper hand. If they close Friday above $0.14, we expect the uptrend to stretch to $0.2 before another correction.

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