The VeChain price has recovered over the last two days and is once again positive for September. During this week’s mini-crash, Vechain (VET/USD) has performed better than many altcoins. Despite sliding 33% on Tuesday, VET has recovered half the losses and climbed above the key moving averages. However, VET is yet to reclaim the uptrend, and until it does, doubts remain.
Even in light of the latest wobble, supply-chain platform Vechain has gained more than 125% from the July low. As a result, the projects market cap has increased by almost $6 billion to $9.3 billion in that time. This ranks VET as the 25th-largest cryptocurrency, behind Stellar Lumens (XLM/USD). Nonetheless, at $0.1250, VET will need to improve by another 123% to equal the $0.2823 record set in April. And for any chance of that to happen soon, it must first deal with the significant overhead resistance.
VET/USD Price Forecast
Looking at the daily chart, we see that coming into Tuesday, the Vechain price was testing the resistance offered by the June $0.1550 high. Notably, Tuesday’s decline to $0.9600 found strong support at the 200-day moving average at $0.1010. This catalyst for a 30% bounce the following day, which lifted VET to trend resistance.
The rally from July resulted in a trend forming below the price. The trend line, now visible at $0.1300, had offered robust support during the recent run-up. However, now the trend is the first level of resistance. If Vechain recovers the trend line, it should retest the $0.1550 high of Monday.
However, below the trend, the price is vulnerable to a reversal. When trend lines are broken, the price will often return to the trend a second time. And if the price is unable to break back through the trend, it validates the breakout. Therefore, if this retest fails, the Vechain price may head lower. If this happens, an obvious target is the 200-day moving average at $0.1010. And if that is crossed, the July lows should follow.