fxstreet.com
- VeChain price has risen 4% after falling 12% from the year-to-date high.
- Currently, VET is showing potential for a 16% downswing in the short term.
- The bearish thesis would be invalidated from a breach above $0.026.
VeChain price is displaying auction market behavior that should be closely watched. Key levels have been identified to determine when VET may create a profitable trading opportunity.
Vechain price is setting up a move
VeChain price is attempting to change the bearish narrative that has recently entered the market. On February 14, the digital currency token was up 4%. Earlier this month, the bears produced a bearish candle beneath the 8-day exponential moving average and 21-day simple moving average. The bulls have failed to retake the barrier during two previous counter-trend attempts.
VeChain is currently trading at $0.023, the third time in less than a week that the bulls are engaging with the $0.024 level where the moving averages are resting. There is a potential that the bulls will reclaim the boundary, but the barrier is currently acting as resistance. If this remains, it could lead to another 12% downswing, targeting $0.020 in the short term. This downswing move would challenge the support near the ascending trend line that catalyzed VET's 75% winter rally.
Invalidation of the bearish thesis would occur if the bulls can reclaim the $0.028 level. Not only will they have to breach the level, but they should also produce a daily candlestick close above the barrier to confirm that the downtrend is over. If this happens, the bulls could reestablish the liquidity hunt towards the $0.028 level, resulting in a 20% increase from VeChain's current price.