VeChain has followed the general sentiment in the market and it’s currently trading in the green. Its 24-hour profits stand at 7.8% with VET’s price exchanging hands at $0.053.
VET trends to the downside in the weekly chart. Source: VETUSDT Tradingview
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In a recent video posted on his YouTube channel, analyst Justin Bennett looked into VeChain as the sell-off across the crypto market seems to slow down. As seen below, on the weekly timeframe, the analyst believes VET’s price is yet to come out of the wood.
As the chart shows, VeChain broke an important trendline on the aforementioned timeframe as it failed to hold above the $0.060 level. Given the relentless selling pressure that led to a breakdown in that structure, Bennet believes “the market doesn’t look all that great”.
Source: Justin Bennett
As long as VET is unable to break above its current levels and return to its weekly trendline, bears could continue to push the price back to critical support. In order for bulls to have a chance at a climb back to previous highs, VeChain must reclaim the $0.060 level in the short term. Bennett said:
It would have to close the day above $0.0650 before it starts to move back to $0.10, $0.12, etcetera. Until that day I think you have to be careful, and you have to realize that the downtrend is still intact.
In case of further downside action, the analyst determined that the $0.0350 area could operate as critical support. In 2021, this level operated as an early resistance and later as key support when the crypto market trend lower after May.
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Therefore, VeChain (VET) is currently at a major crossroad that could determine its price action for the coming months.
Potential Scenarios For VeChain (VET)
In addition to $0.065, $0.035 will be a “level to pay attention to” in case a new lower high comes into play. If the level holds, investors could have an important region for accumulation.
In the coming days, the most like scenario, Bennett claimed, could be a move into resistance for VeChain (VET), Bitcoin (BTC), and Ethereum (ETH). However, he expects those levels to be hard to break and will determine if VET will continue its move into $0.08 or $0.03.
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In the VET/BTC weekly timeframe, VET has formed an ascending triangle that just hit critical support and could operate as support for that potential move into resistance in the coming days.