The Vechain price is testing the resolve of an important trend line at $0.12. This could be a make or break moment for VET’s recovery. As the saying goes: ‘the trend is your friend’, that is of course until it isn’t. And today will determine whether the trend that has supported VET for the last five weeks is a friend or foe.
Following the slump in July, VeChain (USD/VET) has been trending uniformly higher. In the last five weeks, VET has more than doubled from $0.5575 to its current $0.1210. This has increased the supply-chain platform’s market cap from just under $4 billion to $7.6 billion, ranking it the 24th-largest cryptocurrency. Although, despite the impressive fightback, VET is still 57% lower than May’s $0.2823 all-time high.
However, recently, signs have been encouraging. My colleague reported two weeks ago that VeChain had seen an uptick in trading volume and internet searches. This suggests interest has been piqued. Although the crypto market is showing signs of stress in the last few days, and the broad rally is starting to wain. This has left many coins and tokens vulnerable to a correction, And VET is one such coin.
VET/USD price forecast
The daily chart shows the VeChain price momentum is turning negative. The Moving Average Convergence Divergence Indicator (MACD) has slipped into bearish territory. Additionally, the Relative Strength Index (RSI) is beginning to trend lower. Furthermore, the recent price action has resulted in a descending trend line capping the price at $0.134. This is the immediate resistance, and a clearance of this level would potentially open the door to the ATH.
However, a more immediate concern is the supportive trend line $0.1200. should the price lose this support on a closing basis, the price should test the 50,100 and 200-day moving averages. Although, the 200 DMA at $0.0958 is the one that matters.
An extension below this average would indicate that VET has returned to a bear market and potentially heading back to July’s $0.05575 low.
VeChain Price Chart (Daily)
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