Why VeChain May Run Out Of Fuel After 90% Rally
31 March 2022 - 5:00AM
NEWSBTC
VeChain has been able to preserve its current levels as the crypto
market loses steam. The sector has seen a recent bullish price
action which has led the price of VET and other digital assets to a
yearly high. Related Reading | Why VeChain (VET) Could Be On The
Verge Of A 40% Rally At the time of writing, VeChain (VET) trades
at $0.083 with a 13% and 80% profit in the last day and 30-days,
respectively, according to data from CoinGecko. Two weeks ago,
NewsBTC reported a potential 40% rally for VeChain. Based on an
analysis from Justin Bennett, the cryptocurrency was on the brick
of breaking above a trend line which signaled potential
appreciation. This trend line marked the beginning of a multi-month
downtrend, and its reversal could take VeChain into the $0.10 price
point. Therefore, Bennett called this move “significant in terms of
the overall context of the market”. VeChain is yet to complete its
full bullish trajectory into the $0.10 levels and beyond. However,
it did manage to score a 90% rally, according to Bennett,
destroying the market expectations of further downside: VET is the
same project everyone on CT said was dead for months. +97% in 16
days is quite the move for a “dead” coin. Let that be a lesson for
anyone who jumped on the CT bandwagon. Peak pessimism amongst the
masses usually means a buying opportunity isn’t far away. The
$0.080 point will be critical to determine if VeChain can sustain
its current momentum. If these levels hold, VET’s price could
appreciate further and return to its pre-crash levels from $0.10 to
$0.14. Data from Material Indicators (MI) suggest potential
resistance at VET’s price current levels. There are over $2 million
in asks orders above the $0.080 mark which could operate as
resistance. As seen below the most important level to break is
$0.90 which holds the majority of asks orders. Above this price,
there is little resistance. Will VeChain Continue To Appreciate?
Additional data provided by Material Indicators (MI) suggest retail
investors (orange in the chart below) have been buying into VET’s
price recent price action. In the meantime, investors with larger
orders (in green and red in the chart, with selling orders between
$1,000 to $10,000) began selling. VeChain has sustained its
momentum because investors with bids orders of around $100,000
(purple in the chart) have been continuously supporting its price.
If this investor class continues to support VET, the price can stay
at its current levels or trend to either side. Related Reading |
Polkadot, Vechain Founders Pledge Over $10 Million In Crypto To
Ukraine Retail investors buy, but purple seems to dominate and
dictate momentum.
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