VET, crypto on a rope, when will the recovery come?

VET, crypto on a rope, when will the recovery come?

In this new analysis from Wednesday, let’s take a look at the price of VET from the VeChain project. Having erupted in 2021, the situation is now more complicated. Will the end of 2022 be favorable for price appreciation? Or will the price continue to stagnate while the macroeconomic situation improves? Without further ado, let’s get straight to TradingView.

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VET is now at basic key level

VET cost vs. dollar per 3D time unit

After a significant rise in 2021, POE has been on a downtrend, failing to post a new all-time high last November. Since early December, the MA100 has been lost along with the 13/25/32 EMA trio. These moving averages, allowing the trend to be determined in different ways, are not included. Also, there was a false breakout last August. VET was rejected at $0.0335 resistance to move back below the trio of EMAs. Thus, even though the underlying trend is down, we may see a lateralization of POEs for a few months.

In fact, since last May, the asset has been moving between its resistance at $0.0335 and key support at $0.0219. Until this level is broken, nothing is lost. However, the more it is retested, the more likely a breakthrough becomes. So what could happen if POE falls below $0.0219? This will reintegrate the range that took place between July 2020 and January 2021. In this context, a price retracement to the 50% Fibonacci at $0.0137 is clearly possible.

To hope for a bounce with a larger amplitude in VET, it will be necessary to break the resistance at $0.0335. In this framework, the asset can look for the MA100 3D, which is currently consolidating with previous support at $0.0445. Will he get there? For now, nothing has been decided, it is quite possible that there will be a few months of continuity in the range in which VET develops. It is not impossible for the configuration to last several months.

A compression is coming, which direction will the price take?

VET price vs. dollar per 1D time unit
Cost of VET against dollars per unit of time 1D

On a daily scale, price movements are more detailed, we can more easily determine the direction the course may take in the next few days. VET is currently struggling with the EMA trio, to which it has been rejected several times since the second half of August. If it manages to hold above, it is likely to look for resistance at $0.0251/$0.0255. This coincides with the daily MA100, a key level that could signal a trend reversal in the event of a breakout. In this context, we can look at the first target at $0.0289.

On the other hand, in addition to possible continuation of the range that VET fits into, support at $0.0219 will need to be closely watched. If there is acceptance of the price below this level and the price fails to recover it, the signal for another downward movement will be clear. In this context, the objective stated above should be kept in mind if you have a short position. The situation is complicated at the moment. Entering the middle of the range is not the best option, it is better to wait for the price to return to the resistance or support.

Here we are at the end of this technical analysis of VET, the token of the VeChain project. Let’s hope that October will be a little more volatile for this asset, which at first glance seems to be dormant. Watch the key levels identified in the analysis and determine as soon as you can plan whether you are a trader or a long-term investor. In addition, it will be necessary to take into account the macroeconomic situation and the dynamics that Bitcoin and Ethereum will take. For the time being, it is difficult to predict an upward explosion of the asset if the rest of the market parallels it completely in the red.

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