Analyst: VeChain Enters Buy Zone, Should You Jump In?
16 May 2023 - 4:00AM
NEWSBTC
On the weekly timeframe, a crypto analyst named Egrag explained on
Twitter that VeChain (VET) is currently in a buy zone. He further
explained the details of its possible price behavior using trading
charts and noting recurring patterns. VET is in the green today,
holding onto its gains from yesterday’s closing price.
Egrag’s Analysis on VeChain (VET) Egrag mentioned VET’s attempt to
exit the descending channel and move into an uptrend in his
analysis. The asset has remained in a descending channel since
it fell below its all-time high value of $0.2782 in April
2021. According to Egrag, VET attempted a breakout from this
descending channel five times previously. He noted that the
more VET attempts, the closer it will break upwards from its
current channel. Also, the analyst stated that VET would likely
form a double bottom. A double bottom is a technical chart pattern
where the price of an asset touches a low point twice, with a
slight recovery in between. Related Reading: Ripple CLO Exposes How
SEC Ignores Law And Brags About It A double bottom is often
associated with a trend reversal, accompanied by a potential break
to the upside for an asset. The analyst believes this pattern
could occur at the $0.015 price level or the $0.007 zone if the
asset’s price declines further. Historical data shows that the last
time VET reached this price level was in June 2020. Egrag set
up three targets for the asset as pivot points to exit the
descending channel. His price targets are $0.0648, $0.11649, and
$1.66. He believes that VET will repeat its past price action in
2018 as it remained in a descending channel until it broke out in
2020. This breakout climaxed in its all-time high value of
$0.2782 on April 17, 2021. In conclusion, the analyst stated that
VET is currently in a buy zone which presents traders with an
attractive buy opportunity. VET’s weekly chart shows that the
buy zone is between $0.012 and $0.025. The asset entered this zone
in December 2022 and traded there until January 2023. Analyzing
VET’s Price Action VET is currently in a sideways trend on the
weekly chart, but if the analysis is right, the token might see
some action in the short term. Related Reading: Ripple CTO
Labels BEN Coin As Scam, Bitboy Reacts VET’s sideways trend from
December 2022 ushered in an uptrend in March 2023. Therefore, the
token’s price current sideway trend will likely break upward in the
coming weeks if history repeats itself and VET can break from the
descending channel. The Relative Strength Index (RSI) is
41.89 in the neutral zone, reflecting the trend on the weekly
chart. However, it will move to the upside if the bulls prevail.
But VET is trading below its 50-day and 200-day Simple Moving
Averages (SMA), a bearish signal for the asset. Combined with
the descending channel and price consolidation, this fact could
hint at a fresh decline. If VET cannot target and reach higher
levels, bears could re-take control and send the token back into
critical support. VET is currently trading at the $0.01943 price
level and may increase to $0.06 in the coming weeks as it recovers.
Featured image from Pexels, chart from TradingView
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