VeChain has disappointed its investors with the sharp loss it has experienced in recent months. The altcoin, which fell by 61.15% from March 3 to September 7, from $ 0.051 to $ 0.019, is now showing signs of recovery. With the revival of the market, VeChain is pushing a critical resistance level and it is wondered whether it will be able to overcome this level.
Currently, the price has pulled back to the 50-day EMA line. Can VET, which is gathering strength at this level, achieve the expected breakout with a recovery in the market as a whole?
VeChain Crosses $0.023$VET
Looking at the daily charts, we observe that VeChain is still in a downtrend. The price has bounced off the psychological resistance of $0.050 and since this resistance was not broken, there was a pullback from $0.051.
During this process, increasing selling pressure led to the formation of important resistance trend lines and a bearish structure was formed between the EMAs. Currently, the 50, 100 and 200-day EMAs are together indicating a bear market.
However, some changes in market dynamics caused a falling channel formation in VET’s price action. Considering the Fibonacci levels, the last uptrend cycle that started at $0.0199 tested the 73.60% Fibonacci level at $0.02736. The price encountered significant resistance at the 23.60% Fibonacci level, just below the 200-day EMA. At this point, increasing selling pressure stopped the uptrend and the price fell below the 100-day EMA with a 5.56% drop.
VeChain Continues Its Chances for a Rise
Despite the recent decline, VeChain is promisingly holding its 50-day EMA. The altcoin, which has shown a 2.52% recovery, is currently trading at $0.0249 and is exhibiting a bullish formation.
If VET manages to stay above this support, it may break the 23.60% Fibonacci level and challenge the critical resistance trend above $0.030. Otherwise, eyes will be turned to the support points at $0.02378 and $0.020 in downward movements.
