The cryptocurrency market is experiencing a broad correction, with notable declines in altcoins like VeChain (VET) and Ethereum (ETH). However, analyzing the charts reveals signs of potential recovery.
Overview of the Current Market Situation
The cryptocurrency market is undergoing correction, affecting tokens like VeChain (VET) and Ethereum (ETH). Ethereum has dropped from the level of $3,940 to $3,620, marking a significant decline. VeChain has also shown a 6% decrease over the past week.
Comparison of VET and XRP Structures
The daily charts of VET and XRP reveal a striking similarity in their structures. XRP completed the CD leg of a bearish pattern, finding its C point near the 0.618 Fibonacci level. This support zone allowed XRP to recover and rally over 90%. VET appears to be following a similar path, holding near the 0.618 Fibonacci level and the 50-day moving average.
VET's Prospects in the Near Term
If VET can maintain its position above the 50-day moving average and continue to follow this fractal pattern, it could confirm a second leg higher. Analysis suggests VET could potentially climb another 58% towards a target of $0.036. However, maintaining key support at the 0.618 Fib level and point C at $0.02114 is crucial, as breaking below these levels could invalidate the bullish outlook.
Despite the current dip, the structural similarities between VET and XRP offer hope for potential recovery in these cryptocurrencies. The maintenance of support levels will be critical in determining the future price directions.
