As the cryptocurrency market recovers from the recent slump VeChain is the biggest gainer today among the top 100 coins with an increase of 31% coming from yesterday’s open at $0.0076 to $0.00981 where it is currently trading.
From its lowest point at 0.006 on 14. of August the price has recovered by 60% measuring to the level of the current price, but as you can see the price went even further up but found strong resistance indicated by the wick on the green candle. The majority of the percentage increase happened in only one-hour which indicates strong buying activation. Will the buyers continue pushing the price higher and break the 0.236 Fibonacci resistance? We will see in further paragraphs.
VET/USDT: Because VET chart doesn’t have that many historical data we are going to zoom into lower timeframes starting from 15 min time frame.
Even though there isn’t much historical data we can still determinate the price context. As you can see from the moment the price broke out off of the ascending triangle till now we have three structures. First one is the impulse wave down to the 0.382 Fibonacci level or in price terms $0.014. The second structure is a corrective channel in which the price was trending down further and reached $0.006 at the lowest point where the 0 Fibonacci level is. Currently, we are seeing some recovery as the third structure’s upward momentum pushed the price in a 60% increase from the lowest point.
Zooming into the 5 min chart we can see that another channel was formed by the price action in which a five wave upward developed followed by the correction from which the price grew exponentially and increased over 24% in less than an hour. The current structure is definitely impulsive but the upside may be over for the price of VET.
Zooming into the 1 min time frame we can see that the price action has formed a corrective triangle followed by the exponential increase from which the price broke out from the downside which the first sign of weakness and that the corrective triangle wasn’t meant to be a consolidation before another increase. Below you can see my bearish scenario primary count. The horizontal line represents the horizontal support level which now serves as resistance, and as you can see the price action has started forming a cluster around it. In this scenario resistance found on those levels is the end of wave B and the C wave that follows will bring the price back down as B wave would be the second X wave from a minute degree WXYXZ and the C wave would be the final Z wave which may end further down then projected.
Although I am expecting the price lower It can go to the levels of the prior high around 0.236 Fibonacci level before it continues down. In this semi-bullish scenario, the correction ended on the Y wave and we are now seeing another impulse to the upside developing.
The validity of the scenarios depends on what happens on the horizontal level – if the price gets rejected and falls back to the levels of the Y wave than the first one is in play and it should be expected for the price to continue lower from here; but if the price continues to the upside and breaks that resistance than more upside is to be expected for the price of VeChain in the following days.
Having in mind the currently context of the market as a whole I think that we are going to see some more of the green in the following days as the evaluation of the crypto market cap has broken the key support level at $250B and is heading towards $150B but it may retrace back to retest that resistance first because it certainly bounced strong off of the $194B support level.
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