The Vechain price is turning lower from a key resistance level. Weakness in Biitcoin might be about to derail the VET recovery.
VeChain is trading at $0.07653, down $0.03872 (-4.80%).
As has often been the case in recent weeks, Bitcoin is giving back its gains and dragging the rest of the market lower. However, earlier in the week, the reverse was true as BTC recovered from its brief vacation below $30,000. When Bitcoin climbed back to $35,500, its gravitational pull resulted in the VeChain price appreciating 45% from Tuesday’s $0.0592 low.
However, the reactive rally was capped by a double-whammy of resistance levels.
VET price forecast
The daily chart shows Wednesday’s rebound, reversed from the 200-day moving average at $0.08610 and a descending trend line at $0.08950. Individually, they would be considered significant resistance, but together they pose an even greater threat to the recovery.
In addition, a menacing death cross reinforces the negative outlook. Furthermore, the 50-day moving average at $0.1286 has completed a bearish crossover and is now below its 100-day cousin at $0.1387.
That being said, it wouldn’t take much for the VeChain price to flip from negative to positive. If VET rallies just 6.5% higher from here, it will be above both the 200 DMA and the restrictive trend line. This would be a huge achievement and likely result in VET extending to the 100 DMA at $0.1387.
However, this depends on what happens with Bitcoin over the weekend. For now, VET remains vulnerable, but that could change very quickly.