VeChain (VET), currently trading at $0.1979 is experiencing a period of significant uncertainty during a bearish market trend. This analysis examines whether recent network growth can potentially drive a recovery to the $0.24 mark.
VeChain’s price action has been characterized by a falling wedge pattern on the daily chart. After a 3.78% drop yesterday, VET is trading within a narrowing range.
This pattern often precedes a potential breakout; however, the direction of any such move remains unclear. In the past week, VET experienced a decline of 10.77%. This follows a more pronounced drop of 16.71% the week before, marking a bearish engulfing candle.
Network Growth and Its Implications
Despite the current price struggles, VeChain’s network growth shows promising signs. According to VechainStats, the total number of accounts on the network has nearly doubled, rising from 2.16 million to 4.18 million over the past year. Additionally, active accounts surged to 160,264 as of September 3, indicating robust network development.
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Support and Resistance Levels
VeChain’s price action is supported by a trendline that has held for three instances over the past two months. The daily Relative Strength Index (RSI) is showing a bullish divergence, suggesting a potential reversal could be forthcoming.
However, technical indicators present a mixed picture. The post-death cross, with the 50-day and 200-day Exponential Moving Averages (EMAs), indicates a bearish trend. Should the price break below the support trendline, the next support levels are at $0.01922 and $0.0175650. On the bullish side, if VeChain can go above $0.20, resistance is expected near the 50-day EMA at $0.24. Further upward movement could target the 200-day EMA at $0.028.
VeChain’s current price struggle at $0.1979 reflects broader market uncertainties, yet the significant growth in network accounts provides a potential positive outlook. While technical indicators suggest caution, the underlying network health could support a rebound if market conditions improve.
Investors and analysts need to closely monitor the interplay between network developments and market trends to determine whether VeChain can break through the $0.24 resistance level.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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