VeChain (VET/USDT) Recovers From Steep Intraday Losses

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.

Don’t miss a beat! Follow us on Telegram and Twitter.

VET/USDT 4-Hour Chart

Follow Eno on Twitter.