VeChain threatens a break down with bearish pattern, investors must watch out for these levels
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
VeChain [VET] faced stiff selling pressure in recent months. This pressure had not yet abated. Moreover, the price was precariously perched atop the support level of $0.021. At the same time, a bearish pattern also developed on the price charts. Altogether, the picture was quite bearish for VeChain.
Source: VET/USDT on TradingView
In May, VET ranged from $0.029 to $0.034. A week into June, the sellers were able to overwhelm the bids the buyers had in the $0.029 region, and a move as far south as $0.02 commenced. Based on the swing high and low of this move downward, a set of Fibonacci retracement levels (yellow) was plotted.
The 50% and the 38.2% retracement levels at $0.0266 and $0.025 have been tested as resistance. They were not breached, and the market structure remained strongly bearish. Even though VET saw a surge from $0.021 to $0.026 toward late June, there did not appear to be demand significant enough to initiate an uptrend. The Relative Strength Index (RSI) was also unable to climb past neutral 50 and flip it to resistance. Once again, the bearish bias was highlighted by the RSI.
Alongside the downtrend, a descending triangle pattern was also forming. The base of this pattern sat at the $$0.0215 support level.
Source: VET/USDT on TradingView
On the four-hour chart, there were two important regions highlighted in cyan and red. These two areas represent bullish and bearish order blocks respectively. The base of the triangle pattern has also offered support in recent weeks.
Generally, when such a triangle pattern forms after a downtrend, it signals a continuation of the
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