VeChain Token Price Analysis: VET token price has bounced off the demand zone, will it give a breakout or will fall again?

• VET token price has shown a sharp bullish momentum in the past 72 hours, as now the token is hovering around the supply zone.
• The VET token price is forming a double bottom pattern on a daily time frame as it trades in a narrow range.
• The pair of VET/BTC is trading at the price of 0.0000011 with an increase of 4.58% in the last 24 hours.

VET token price is hovering around the supply zone, as the price action suggests. Recent bullishness in the last 1 week has resulted in the VET token price has led to bullish momentum. The VET token price broke off the important demand zone of $0.030. At present, the $0.030 is acting as a strong supply zone. The token price has tried to break out the supply zone multiples but has failed. The supply zone has become weaker as the token tested the supply zone multiple times. Currently, the VET token price has been trading below all the important 50 and 100bMoving Average. Recently the token price tried to break the 50 Moving Average but failed to do so. At present, the VET token price has been trading around the upper band of the Bollinger band indicator after bouncing off the lower band. Although the token has given a breakout of 20 SMA, it remains to see if it will break out of the narrow range or fail to do so.

The VET token price is forming a rounding bottom pattern on a daily time frame

The VET token price has been rising on an hourly time frame as it reached the previous breakdown zone.

Moving Average Convergence Divergence: MACD indicator has turned bullish as the VET token price bounced off the demand zone on an hourly time frame The blue line crossed the orange line on the upside. If the VET token price gives a breakout of the supply zone of $0.02675, the MACD lines can be seen widening supporting the breakout of the supply zone. Until then investors should wait for a clear trend. 

Supertrend: Supertrend indicator gave a buy signal as the token broke the super trend sell line with a strong bullish candlestick pattern. The VET token price broke off the super trend line at $0.0260. Since then the token has been in an uptrend. Going upwards the token can face rejection and fall to the super trend buy line acting as a strong demand zone.

The VET token price is forming a falling wedge pattern on the daily time frame

The VET token price has continuously fallen in the higher time frame as the token forms lower low and lower formations.

Average Directional Movement Index: ADX has been continuously dipping and recently it slipped below the 25 levels. The ADX curve has been seen depicting the trend of the VET token price on a weekly time frame. Once the token gives a breakout of a red trending acting as a strong supply zone, the ADX curve can be seen moving upwards supporting the trend. As of now, the ADX curve has turned sideways indicating a halt in the price of the VET token.

Relative Strength Index: RSI curve is trading at the level of 36.71. The RSI curve is yet to cross the halfway mark of 50. Once the token gives a breakout of the falling wedge pattern, the RSI curve can be seen moving upwards supporting the bullish momentum. Although the RSI curve has crossed the 14 EMA, the RSI curve must cross the 50 halfway mark for a strong momentum.

SUPPORT: $0.023 and $0.020

RESISTANCE: $0.0270 and $0.0290

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not abolish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.