VeChain (VET) – In bearish correction modePosted on Wednesday, November 24 2021 at 8:35 pm GMT+0000
VeChain (VET), the world’s leading blockchain application platform driven by Enterprise Adoption, is developing in an uptrend with a sequence of higher tops and higher bottoms but has been retracing from its all-time high and is currently testing the 61.8% Fibonacci retracement support.
Despite this uptrend, various bearish signals are emerging. The convergence between the 20 and 55-day exponential moving averages suggests that a bearish crossover could materialize soon. Momentum oscillators are also backing up the current bearish mood. The MACD has been below its signal line and recently dipped in the negative territory following the steps of the RSI that has been trending down below its equilibrium level (50) backing up the bearish momentum.
Price is trying to build a base around 0.1222 the 61.8% Fibonacci retracement of the latest bullish wave from 0.0815 to 0.1875. If the bears keep pushing, the price could extend lower towards the next support zone around 0.1043 represented by the 78.6% Fibonacci level which also coincides with the uptrend line drawn along the lows of July and September. Losing this channel support, the price could go for a retest of the September low at 0.0816 which if broken, will negate the bullish structure.
On the other hand, If the bulls regain control around the current levels, preliminary resistance could transpire around 38.2% Fibonacci level at 0.1471 which also represents the reaction high of October 26th. Pushing further, the price could stumble upon the second resistance incorporated by the all-time high of April 17th and the channel line around 0.1876.