Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
VeChain has been bullish on the charts for the past week. The near term outlook continued to lean towards the bullish side as the market structure for the token remained bullish on the lower timeframes. However, the $0.75 level would need to be flipped to support to spark interest from investors with longer investment horizons. Vechain has gained almost 25% in the past week. But the question is, can we expect even more profit?
Source: VET/USDT on TradingView
In late January and early February, the price entered a phase of consolidation as it formed a range between $0.05 and $0.056. In the past week, VET broke past its series highs and has been rising ever since. It was able to reach the $0.69 highs but was unable to push higher.
The Fibonacci retracement levels (yellow) plotted based on the decline in VET from $0.096 to $0.043 and gave the $0.056 as the 23.6% retracement level. In addition, the $0.056 area has been of interest since February 2021. That is why it was important to climb along this area for the past few days.
At the time of writing, the $0.062 mark (higher low) was held as a support. The market structure remained bullish, but a close below USD 0.062 would signal a possible return to the USD 0.06 area in search of demand.
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Source: VET/USDT on TradingView
The MACD made lower highs even as the price tried to move past $0.069. The Awesome Oscillator also fell back below the zero level to signal bearish momentum. On the AO, momentum has been bullish for most of the past week.
The OBV also supported the AO – there has been steady demand in the market for the past few days as the OBV made a series of higher lows. So even if the bullish market structure were to break in the near term, the $0.056-$0.06 area could see bids come in.
Inference
The $0.075 and $0.0699 levels were looming resistance levels, while $0.062 was a near-term support level. While momentum has been bearish over the past few days, VET may provide another push towards the USD 0.075 level. The $0.056-$0.06 area was significant over a longer period. So as long as VET bulls can defend this area, a move higher cannot be ruled out.
This post This level must be flipped for VET to have a constant demand behind his rally
was published first on https://ambcrypto.com/this-level-needs-to-be-flipped-for-vet-to-have-steady-demand-behind-its-rally/
