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The vocational education and training market could weaken and prolong the downward trend.
Development activity and open interest declined.
VeChains [VET] the uptrend momentum slowed as the weekend (mid-January) approached. It reached as high as $0.02163 before the bears pushed it into a near-term range.
At time of publication, VET was trading at $0.02058 after retesting the bulls immediate support at $0.02010.
However, VET’s overbought condition could set it for another retest of the above support or a break below it. Such a downward movement could allow short traders to take advantage of short selling opportunities at these levels.
Read VeChain [VET] Price prediction 2023-24
The $0.02010 Support: Is a Retest Likely?
VET’s recent rally offered investors a gain of about 40% as it rose from $0.01543 to $0.02168. During the rally, VET reached the overbought zone, as evidenced by the Relative Strength Index (RSI) hovering above 70. The overbought condition makes a trend reversal very likely.
In addition, On Balance Volume (OBV) peaked and then showed a downturn, indicating that trading volumes peaked and declined slightly. Therefore, VET may drop the $0.02010 support and retest if it breaks and is held by $0.01950.
These two levels can provide short selling opportunities for short traders as VET weakens.
How much is 1,10,100 VETs worth today?
However, VET is still bullish and could attempt a break above $0.02082. If VET bulls overcome the hurdle, especially with a bullish BTC, they can focus on the overhead resistance at $0.02229. But such an uptick will invalidate the bearish bias described above.
VET’s development activity and outstanding interest declined
VET has recorded an increase in development activity since the beginning of the year. However, development activity leveled off and declined slightly at the time of writing. But investor prospects for the asset remained upbeat, as evidenced by the positive-weighted sentiment.
Nevertheless, the Binance Funding Rate for the VET/USDT pair fell sharply, indicating that demand for VET was declining at the time of publication. The drop in demand could affect a bearish outlook for the asset if it continues within a few hours/days.
Finally, VET had a divergence between hidden price and open interest (OI) as VET hit higher lows from Jan. 14, but open interest fell sharply over the same period. It shows that the upside momentum could slow and make a U-turn as more money flows out of the VET futures market.
However, VET’s OI and volume could increase if BTC is bullish; thus, investors should monitor the performance of the King’s Coin.
This post The VeChain market could weaken, but short traders can take advantage of these levels
was published first on https://ambcrypto.com/vechains-market-could-weaken-but-short-traders-can-gain-from-these-levels/