VeChain Price In Dilemma While This Extremely Accurate Indicator Flashes Sell Signal
- VeChain price is dancing between the 50-day SMA support and the 200-day SMA resistance.
- The TD Sequential indicator calls on investors to consider offloading VET, which may reinforce the bearish outlook.
Following a gradual correction from $0.28 (the all-time high) traded on April 17, VeChain secured formidable support at $0.05. This buyer congestion zone brought back stability in the market. It also coincided with the generally bullish outlook in the cryptocurrency market toward the end of July.
VeChain bulls assumed complete control over the price, pulling the token marginally above $0.09. Although investors were looking forward to gaining ground past $0.1, the 200 Simple Moving Average (SMA) capped the upside.
VeChain Price Next Move Depends On These Key Levels
The rejection from the immediate resistance, 200 SMA, has seen VET trim some of the gains. However, bulls seem to be putting up a fierce fight at the 50-day SMA. As long as this crucial support remains intact, VeChain will battle to resume the uptrend.
Note the Moving Average Convergence Divergence (MACD) has a bullish signal. This technical tool tracks the trend of an asset and calculates the momentum. As the moving averages oscillate, a sell or buy signal is sent.
Thus, a buy signal implies that the uptrend is intact despite the minor correction. Similarly, as the MACD crossed above the mean line, the odds for gains to higher levels rose. Nonetheless, VeChain must break above the 200 SMA to ascertain the strength of the uptrend.
VET/USD daily chart
A falling wedge pattern's breakout on the same daily chart was recently confirmed as VeChain price cracked through the upper trend line's barrier. The bullish impact of the pattern could still bolster VET significantly upward. Realize that a falling wedge is highly bullish and often leads to a trend reversal. Therefore, a break above the 200 SMA will remove the bottleneck.
How VeChain's Downtrend Could Gain Traction
The TD Sequential indicator has recently presented a sell signal in the form of a green nine candlestick on the daily chart. It implies that the bullish outlook is fading, although gradually while sellers prepare to regain control.
VET/USD daily chart
If validated, VeChain will break the winning streak in the last two weeks to post losses in one to four daily candles. A break under the 50-day SMA will add credibility to the downtrend, allowing VET to explore areas toward $0.05.