VET Technical Analysis: The Market Is Not Ready for Vector Movement
The last three trading weeks in the VET market were spent in the price correction and testing the key liquidity range of $0.084-$0.094 for strength. After repeated attempts by buyers to take control of the $0.146-$0.153 range, sellers tried to capture the VET market in September. However, on the weekly chart, we see that the last trading week showed the desire of buyers to continue the growth trend.
The global growth trend in the VET market continues. Sellers have not been able to test the bottom trend line of the trend channel, but they still have such a chance. The fact is that the movement of Vechain prices from the end of July to the present is happening at low consolidation volumes. Given the fact of a clear consolidation range of $0.084-$0.153, the next VET price movements can be predicted only within the limits of this consolidation. It is there that the trading volumes increase and the situation becomes clear. Furthermore, everything that happens within the consolidation is unpredictable and can change drastically due to low trading volumes.
Therefore, the main scenario for us at the moment is the continuation of the VET price consolidation movement, possibly even until the end of November.
Technical Analysis of VET in the Daily Timeframe
Analyzing the daily chart of VET prices, we noticed that the local reversal of the market was not due to the strength of buyers, but due to the weakness of sellers. Pay attention to how much sellers tried to push the VET price down on 28 September. During the sellers' attack from 7 September, trading volumes were the lowest. The price reversal took place without a fight.
Therefore, so far we cannot talk about the aggressiveness of buyers and their ambitions to continue the growth trend right now. First, buyers have already experienced problems near the local range of $0.113-$0.122. On 1 October, buyers with increased volumes tested this local range and were forced to stop. In fact, in 4 days, the VET price is consolidating under a range that is not of global significance for cryptocurrency. Thus, the probability of re-testing the lower limit of consolidation of $0.084-$0.094 is quite high. If buyers do not allow updating local lows — this test will be a good chance to buy VET with low risks.
The VETBTC Price Is Under the Control of Sellers
Analyzing the VETBTC chart, we can see that after the May price collapse, market activity disappeared. Sellers managed to push the VETBTC price below the trend line, which buyers have been keeping since February 2021. The critical point for buyers is the range of 0.00000202-0.00000209. To change the situation on the VETBTC market in their favor, buyers should seize the liquidity zone of 0.00000246-0.00000262. Only after taking control of this range, we can confidently say that buyers are ready for a new growth wave.
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