VeChain (VET) Tests Key Support Levels, Breakout Potential Looms

VeChain (VET) is at a critical juncture in its market performance. As highlighted by crypto analyst Cheeky Crypto in a recent YouTube video, despite a 40% decline since announcing its partnership with the Better Tomorrow Partnership, VET has outperformed many other altcoins. The token is currently encountering resistance at the 50-day exponential moving average (EMA) and simple moving average (SMA).

Simultaneously, it is seeking support around the 200-day EMA. If VET can establish and maintain this support, a breakout could occur. However, a close below the 200-day EMA could lead to further declines, potentially testing the 2.9 to 3.22 cent range.

The current price action represents a standard corrective move, not indicative of a long-term downward trend. Short-term volatility is expected, but there is potential for a significant upside run following this correction.

VET is in a wide trading range, oscillating between high and low prices. This pattern suggests a continuation of the previous trend and a corrective move to the downside. The next leg down may find support between 2.9 and 3.2 cents. If this fails, the next support level to watch is around 2.5 cents.

An encouraging aspect of the current market condition is the volume profile. On a weekly time frame, the decrease in volume as the price drops is a positive sign. This lack of selling pressure indicates less appetite to sell VET and more interest in buying it on a macro scale. This suggests that support at the 2.9 to 3.2 cent range may hold, positioning VET strongly for the long term.

In comparison, Bitcoin is in a similar situation, and any correction in Bitcoin could cause VeChain to correct in tandem. However, there is an expectation of some volatility to the upside, with potential price spikes above the 50-day EMA and SMA before a significant rally.

The live VeChain price as of press time is $0.035805, with a 24-hour trading volume of $61,338,173, showing a 1.42% increase in the last 24 hours.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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