Although the VeChain price has found some support as it approaches $0.0800, the VET token must clear $0.1180 to reclaim the bullish trend. Similar to most of the market, VeChain (VET) is struggling to recover the losses it suffered in the risk-off that dominated the early part of last week. The near-collapse of the Chinese property developer Evergrande sent shockwaves across risk markets, prompting investors to bail from cryptos in droves. The selling that started Monday accelerated through Tuesday, and Bitcoin (BTC) slid 16%, triggering mass liquidations in Altcoins. As a result, VeChain cratered 25%, losing trend line support and slipping below the 100-day moving average.
In the two days following, VET climbed 30% from Tuesday’s $0.083 low, reclaiming the 100 DMA and working its way back towards trend resistance. However, on Friday, the crypto market succumbed to another wave of selling following the news, the Peoples Bank of China outlawed all forms of crypto transactions. Of course, this isn’t the first time the nation has vowed to clamp down on cryptocurrencies, and the announcement had less impact than previous ones. However, VeChain did react lower, returning to Tuesdays low, where it again found support.
VET price Analysis
The daily chart shows several bearish developments, which will prove a challenge for the VeChain price. Firstly, VET is below the 20, 50, 100 and 200-day moving averages. Secondly, the flush lower last week forced Vechain below trend line support at $0.1150. Additionally, light trading volume and the neutral Relative Strength Index reading of 40.40 signal a lack of buying interest.
However, despite a lack of bullish catalysts, VET has held above $0.082 over the last week. Therefore, this becomes the first level of support. But should VET slide below $0.082, the price is vulnerable to extending to the July lows around $0.055. However, if VET stabilises above $0.082 and reclaims the 100 DMA at $0.0899, it may advance to trend resistance at $0.1150. Reinforcing the trend resistance is the 200-day moving average at $0.1180. Only a close above the 200 DMA would relieve the immediate pressure for the bulls. Decisive clearance of $0.1180 would set the price up for another run at the early-September highs around $0.1500.
VeChain Price Chart (Daily)
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