Vechain has been able to recover all losses it sustained this Sunday following the cryptocurrency bloodbath, but still faces downside risk prospects as buying momentum has dried up.
A rumour started as a tweet about a potential investigation of several crypto projects for money laundering set off a huge market selloff, triggering a record number of liquidations in the cryptocurrency market.
Several of the top-10 most capitalized cryptocurrencies posted steep price declines. Vechain was down nearly 10.62% earlier, but has now recovered and is trading at the breakeven point as of the time of writing.
Technical Outlook for VeChain
The VET/USDT pair is seen to be testing the 23.6% Fibonacci retracement level on the 4-hour chart. A break above this level allows the pair to target the current ATH at 0.279829. This move would constitute part of the breakout move from the bullish flag, targeting a price projection of 0.30000 (a psychological resistance). This psychological resistance can only be attained if the bulls uncap the resistance posed by the current all-time high price.
On the flip side, a rejection at 0.236935 (23.6% Fibo retracement) could lead to a pullback, targeting the 0.207960 support level (38.2% Fibonacci retracement level). If the decline is extensive, the 50% Fibonacci retracement and 15 April high at 0.184541 could come into play. This move would also invalidate the bullish flag in the short term.
VET/USDT 4-Hour Chart
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Cryptocurrency exchange with over 150 coins. As of Jan 18, Binance was the world's largest cryptocurrency exchange per volume.