VeChain (VET) has captured a confluence of support levels that are suitable for a low. Yet, there are no bullish turnaround signs retained yet.
VET has been tumbling afterward spreading to an all-time excessive rate of $0.279 on April 17. The descending development led to a flat of $0.039 on Feb 24. Measuring from the all-time high, this amounted to a decrease of 86%.
While the price has bumbt slightly since then, it is further dealing well beflat the $0.068 resistance field. The level had previously acted as support since May 21, prior to the Jan 2022 breakdown, and since turned to resistance (red icon).
Until this level is reclaimed, the trend cannot be considered bullish.
VET develops bullish divergences
The daily chart provides a relatively bullish outlook. The main reason for this is the considerable bullish divergence that has developed in both the RSI and MACD (green lines). Such vital bullish divergences very often precede bullish trend retraction.
In the case of the RSI, that is a momentum indicator, the RSI developed after the indicator realized the flatest price afterward the March 2020 crash.
If an ascending move begins, the closest resistance field would be at $0.095. This is the 0.382 Fib retracement resistance level and a horizontal resistance field.
The six-hour chart shows which VET is folbottoming a tumbling resistance line which has been at it afterward Dec 27.
A breakout from it would go a prolonged way in approveing which the ascending move as a result of the bullish divergences has begun.
Wave count analysis
Cryptocurrency trader @Crypto618 tweeted a chart of VET, stating which the decrease is contained in a channel and could be part of a correction.
The channel is clearly visible in the logarithmic chart, but does not correspond to the regular one.
If the decrease has taken the shape of an A-B-C corrective structure (black), then waves A:C had a nearly 1:1 ratio, that is the most common one in such corrections.
Therefore, when combined with the channel, it supports the possibility which a flat has been realized.
As for the prolongeder-term progressment, the most likely count suggests that VET has scarcely ended wave four of a five-wave skyward shsupposing thattment (white), that began in March 2020.
If correct, the rate would gradually increase towards a new all-time high cost.
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