VeChain (VET) displays interesting price movements characterized by a symmetrical triangle formation that may herald market changes. This article examines the current price reaction, support levels, and potential future scenarios.
Symmetrical Triangle Formation
The daily chart of VeChain shows price compressing within a symmetrical triangle that has developed since May. This formation indicates converging trendlines that often precede decisive breakouts. Trading volume has been tapering off, signaling reduced activity and preparing for larger directional moves. Alpha Crypto Signal highlighted the completion of an ABCD swing structure within the triangle, where each phase respects the boundaries, suggesting alternating phases of buyer and seller control.
Bearish Scenario
The critical pivot remains at $0.023. A close below this level could confirm further bearish continuation, revealing levels around $0.021 to $0.020. This would align with historical demand levels and attract seller momentum if volume supports the move. There was a trading volume of $51.98 million in the last 24 hours, indicating bearish pressure amidst declining prices of 7.48% over the past week.
Bullish Scenario and Resistance Levels
For bulls, reclaiming $0.026 remains crucial. A breakout above this level could trap shorts and extend toward $0.030. This scenario requires a convincing shift in volume and momentum to establish strength. The EMA (9) at $0.0244 and SMA (50) at $0.0242 show flatlining, reflecting indecision until a breakout occurs.
The current situation with VeChain warrants close attention from investors and traders, as September promises to be pivotal. Support and resistance levels will dictate further price dynamics in the coming weeks.
