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VeChain Price Analysis: Bullish Breakout or Bearish Correction?

VeChain Price Analysis: Correction Coming After Recent Gains?
VeChain Price Analysis: Correction Coming After Recent Gains?

VeChain (VET) has seen impressive gains recently, reaching its current price of 5.7 cents. JB is optimistic about a continued rise towards 5.8 cents, he also states there are signs suggesting a potential correction.

Looking at the bigger picture, the weekly chart presents some bearish signals. The resistance level at 4.99 cents and the turning bearish on the stochastic indicators raise concerns about a potential price drop. Additionally, the red cell signal, negative VWAP (Volume-Weighted Average Price), and slowing money flow on the weekly timeframe all point towards a bearish trend.

However, there’s a counterpoint to consider. The daily chart offers a more bullish perspective. The price movement suggests a possible upward push towards 5.9 cents to 6.7 cents, potentially forming a head and shoulder pattern. This pattern, if confirmed, could indicate a bullish breakout.

For traders, a cautious approach is advisable. A long position with a stop-loss set at 1.72 cents and a target of 6.3 cents could be a viable strategy based on the daily chart.

Shorter timeframes like the four-hour chart introduce further complexity. While there’s support at the equilibrium level, the presence of bearish signals suggests a potential downside continuation. The red dot sell signal on the four-hour chart reinforces this possibility.

Finding support at the 200 EMA (Exponential Moving Average) around 4.47 cents could provide a long entry opportunity for investors with a higher risk tolerance.

Overall, cautious optimism is warranted for VeChain. Profit-taking might be prudent based on the weekly chart signals and prevailing market conditions. Investors and traders should conduct thorough research and employ proper risk management strategies before making any investment decisions.

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