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28 March 2024
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Vechain Price Analysis: VET is consolidating near the 200 EMA after a breakout of an intriguing pattern

  • VeChain Coin is looking bearish on the weekly time frame after a rally over the weekend.
  • In terms of the daily price chart, VET Coin is trading above the 200 EMA of the EMA Ribbon indicator.
  • Trading volume has been gradually reducing since March 27.

VeChain Coin has only once noted the 2022 low at $0.03905, which has become an important support level for VET holders. Since then, the bulls have been looking aggressively to buy, therefore, the digital asset has recovered more than 100% of its cost in less than 2 months.

Source: VET/USDT by Tradingview

Prior to the uptrend, panic sellers were attempting to place VET in a descending triangle pattern (noter in the chart) and the sloping trendline of the pattern was the bear’s containment zone. However, the bulls managed to break this bearish barrier. Now the VET outlook is showing consolidation at the $0.07899 level. Moreover, the VET/BTC pair price is bearish 2.4% on 0.000001694 satoshis.

The daily volume numbers are declining after seeing the volume bar’s highest peak in 2022 on March 27th. Over the past 4 days, VET has had very few liquidations near $407 million, so traders are vulnerable to low volatility. Furthermore, the volume to market capitalization ratio is 0.07977.

The $0.070 area is showing significant support for VET investors, which was a major resistance prior to the halving. Looking at VET’s price action, the daily price chart is nearing the 200 EMA line (Yellow) of the Ribbon Indicator during a consolidation phase. Furthermore, the green moving ribbon is well below the live price of the Vecain coin.

The technical indicators are bullish for VET coin 

Source: VET/USDT by Tradingview 

The RSI or MACD indicator is showing divergence for the VET coin momentum in the context of the daily price chart.

The RSI is moving above the bullish trendline (blue), but it looks weak after returning from the overbought zone.

The MACD indicator has been rising steadily since mid-December and is forming a higher-high above the uptrend. But still it is yet to crossover upwards or downwards.

Thus, the ADX indicator is quite bullish for VeChain Coin and is now at the 46-mark.

Conclusion

Technical indicators are suggesting a bullish trend except for the RSI as it turns back from the overbought zone. Bulls need to keep the VET price above the 200 EMA of the EMA ribbon indicator for the upcoming rally to continue.

Resistance level- $0.10and $0.18

Support level- $0.070 and $0.050

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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