- VeChain has battled to close over the 4H Kijun-Sen in Ichimoku.
- If the bearish outlook persists, VET might see its price dropping to $0.10.
- The 61.8% FIB level seems the target area with extended downswings.
For now, VeChain trades considerably higher than where the token stood following Tuesday’s flash crash. While writing this content, VET has gained 25% since the crash. However, the prevailing swing pattern and extended bearish moves indicate that the token might retest its Tuesday lows.
VeChain Prints Bearish Flag
VeChain’s price chart noted two bearish flag formations. The first one lies on the candle chart, terminating against the Kijun-Sen near $0.128. Remember, the Kijun-Sen acted as the initial resistance on the four-hour chart since the first considerable bounce from Tuesday’s lows.
The 2nd bearish pattern lies on the VET’s RSI (Relative Strength Index). The previous bear flag channel’s high on the RSI peaked at 45.45 depicts an initial overbought case in a bearish market. The concealed bearish divergence in the Composite Index and the candle chart adds credence to the likely downswing. If the token’s bearish flag triggers another southward move, the 61.8% FIB expansion at $0.100 remains the targeted zone.
Meanwhile, most FIB expansion from the initial plunge will attain their 100% zone. If the token achieves the 100% FIB expansion case, VET will trade at the price level of $0.085. Bears might storm to rage any expectation or excitement of VET move under the $0.10 zone. The 50% FIB retracement and the Senkou Span B bottom on the daily price chart fall in the value area at $0.10.
Meanwhile, VeChain will invalidate the extended bearish case if it turns to close beyond the $0.15 mark. Remember, VET’s actions come as most cryptocurrencies battle to reverse the losses from Tuesday’s sudden losses.
For now, VeChain will have to take advantage of the correct catalysts and overall market rally to alleviate its possible price plunges. On the other hand, BTC battles around the $47K level as it struggles to rise towards the psychological at $50K.
What are your opinions about VeChain’s incoming price actions? You can share your views in the section below.