VeChain (VET) has recently announced a significant partnership with Dave Leduc, a well-known figure in the crypto space. This news has boosted sentiment around the project, but technical analysis suggests that a correction may be imminent.
Five-Wave Move to the Upside
VeChain’s price has been in a five-wave move to the upside since June 2022. This move has been impressive, but it may be nearing completion.
Potential for a Correction
The daily chart suggests that a price correction is possible. The 50 SMA (Simple Moving Average) has been rejected, and the stochastic is overbought. This indicates that a pullback may be in the cards.
Wider Market Factors
Wider market factors such as war concerns and the upcoming Fed interest rate meeting are also influencing the market. These factors could lead to a sell-off in the crypto market as a whole, including VeChain.
Smart Money Concepts
Smart money concepts also suggest a possible price drop. For example, there is a large order block between 0.256 and 0.074, which could act as a support level. However, this level is considered unlikely to be filled.
Potential Targets in the Bear Market
The focus is on the 702 FIB level, just shy of 1 cent, as a potential accumulation opportunity. This level represents a significant discount to VeChain’s current price.
The content of this article is not financial advice. Investors should always do their own research before making any investment decisions.
Technical analysis and wider market factors suggest that a correction in VeChain’s price is possible. Investors should be aware of this risk before investing in VeChain.