VVV crypto falls 25% – Could Venice Token’s buy zone be near $20?

Venice Token [$VVV] slid to a low of $25.90 on the 29th of September, marking a 25% drop from its record peak of $34.60. Although the altcoin flashed a reversal sign (an incomplete hammer candlestick), an extra price decline and discount couldn’t be overruled.

Should $VVV crypto bulls wait a little longer?

Following Bitcoin’s [$BTC] cue and subsequent drop from $87K to $82K, the $VVV crypto also faced a similar sell-off. The $VVV crypto tripled in Q3, rising from $10 to $35, a whopping +230% gain between July lows and September peak.

Although the brief Bitcoin pullback triggered $VVV holders to book profit, the selling may be far from over. First, the broader market may remain range-bound ahead of the Fed rate decision in late October. If so, altcoins that have exploded in Q3, including $VVV, may see more profit-taking.

On this macro backdrop, the recent 20% drop seems incomplete. The pullback has not touched the typical golden zone and reversal level at the 50%-61.8% Fibonacci level ($20-$22). In other words, an extended decline could still be possible towards this support level.

The level was also a confluence of the 200-day Moving Average (MA) and the Fibonacci golden zone, further reinforcing it as a crucial support zone.

If so, an extended pullback to 35% could increase the odds of a strong reversal if the 200-day MA/golden zone area holds. That would offer another long opportunity targeting the recent peak at $32-$35. Such a setup would be a 53% upside potential.

In contrast, a break below the 200-day MA would invalidate the bullish thesis.

Will $VVV crypto burns boost recovery?

That said, the Q3 explosive rally was also marked by a whopping 3x burn rate in September alone.

Notably, the volume of $VVV burned jumped from $11K to nearly $30K. Overall, $666K has been spent to buy and burn $VVV tokens. Despite a 3x run rate in September, this was still 4% below the pace seen in August ($691K).

In other words, the aggressive pace of burn rate and overall deflationary narrative also fueled $VVV’s explosive Q3 rally.

In conclusion, if the macro pressure eases and Bitcoin defends $84K, a rebound could be likely in October. If so, $VVV could defend $20 and re-target $35 or higher. But if macro pressure deepens and $BTC loses $84K and $80K support, then the $VVV token could be dragged lower.

Final Summary

• $VVV crypto is down 25% as Bitcoin’s cool-off triggers profit-taking
• The AI token tripled in Q3 but faced a tough October amid broader macro pressure