VeChain's price increase of 2.20% faces strong bearish resistance.
A break below $0.02194 could lead to a sharp drop towards $0.01509.
RSI and MACD suggest more downward movement for VeChain soon.
Over the past 24 hours, VeChain has seen a slight bullish move, with its prices reaching $0.02343, marking a 2.20% price increase. With a market capitalization of $1.1897 billion, VeChain has secured the 46th position among the top cryptocurrencies by market capitalization.
VeChain Sees Minor Gains Amid Fluctuations and Lower Trading Volume
The token's resilience in the market can be seen from its increase in market capitalization of 2.20%. Despite the market cap increase, the trading volume is contradicting the coin's momentum, which has decreased by 7.19% to a net price of $14,357,021. The decline in trading volume and the high market volatility suggest a period of reduced trading activity, indicating a possible consolidation phase or that the investors are not active.
Source: coinmarketcap
The price of VeChain has seen some fluctuations throughout the day, ranging from $0.02291 to $0.02360. This shows that the coin has seen some increase, and its market could have a small investor engagement. The coin has generally managed to secure minor gains over the previous day, despite some market and price fluctuations.
Moving on to more technicalities, VeChain is currently experiencing a bearish pressure, as indicated in the charts, which showcase a descending triangle pattern, which is a classic bearish formation. This pattern is characterized by lower highs and a consistent support level, which signals the continuation of the downward trend.
Source : TradingView
Speculating from the charts, the coin's price has dropped to $0.02277, reflecting a 3.58% decrease within the observed period. The fluctuation of prices has been evident between the $0.021094 support level and a resistance of $0.02365. And as of the present Fibonacci retracement level, it showcases major resistance points that the token must overcome to reverse its bearish trend. The key fibonacci levels are at 23.60% ($0.0550), 38.20% ($0.03820), 50.00% ($0.03000), and 61.80% ($0.04000), with the 78.60% retracement seen at $0.02994 acting as a crucial resistance point.
VeChain Risks Major Drop Amid Bearish Indicators and Weak Support
The relative strength index is currently at 40.20, placing it in the lower neutral zone. The coin is not in oversold territory and is also not far from overbought territory, leaving room for further downward movement. Furthermore, the MACD indicator further supports the downward momentum, with the MACD line surfing below the signal line and facing downward in negative territory. Followed by this, the histogram also indicates red bars in the charts, showing that the market is continuously declining in price.
The declining triangle pattern is often an indication of the market further declining, especially when the price breaks below the equilibrium support level. From the charts, the critical support level appears to be around $0.02194, making it a crucial point of breakout. If the price breaks below this level, it could signal a huge drop in value, potentially pushing it towards the $0.01509 level. Consequentially, if the coin manages to break out above the declining pattern and surpass the key resistance levels, especially at 78.60 Fib levels, it could signal a reversal.
The post VeChain Faces Bearish Trend with Potential Drop Despite Minor Gains appeared first on Crypto News Land.
