fxstreet.com
- VeChain price is close to retesting the $0.086 support level after failing to set higher highs.
- A potential increase in buying pressure around this area will likely propel VET by 35% to retest the $0.118 resistance barrier.
- A breakdown of the $0.079 support floor will create a lower low, invalidating the bullish thesis.
VeChain price has remained in a lull despite many altcoins’ remarkable recovery. The altcoin’s attempt to push through and produce a higher high was foiled, resulting in a retracement to an immediate support level. This correction to support will likely provide the platform for a recovery that will propel VET to pre-crash levels.
VeChain price vies for an uptrend
VeChain price set up a swing high at $0.099 on December 5 and retraced below the immediate support level at $0.0086. While this dip was brief, the recovery that followed set up a lower high at $0.097.
Since that point, VET has consolidated but is slowly trending lower, approaching the $0.086 support level. A retest of this barrier will create a triple tap setup. Sidelined buyers can enter long around this level and wait for the reversal of the downtrend and the start of a new uptrend.
Investors should expect VeChain price to rally past the $0.099 swing high and reach for the $0.118 resistance level. This move will constitute a 35% move and help VET recover to pre-crash levels. Despite the bullish outlook for VET, market participants should, nevertheless, exercise caution around these levels.
VET/USDT 4-hour chart
If VET penetrates below the immediate support level at $0.086, however, it will indicate that the selling pressure is overwhelming the bullish momentum. If bears knock VeChain price back down to produce a lower low below the $0.079 platform, it will invalidate the bullish thesis.
In this situation, VeChain price could retrace to or sweep below the $0.070 support barrier, where buyers could then still, nevertheless, come in and give the uptrend another shot.