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VET Looks for Support After Failing to Break Out

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VeChain (VET) has been increasing since July 20 but has failed to move above the $0.142 horizontal resistance area. 

The token has broken down from a short-term ascending support line and is currently attempting to find support.

VET attempts to break out

VET has been moving upwards since July 20, when it reached a low of $0.056. The upward movement continued until Aug. 16, then the token managed to reach a high of $0.144.

However, it failed to break out and was rejected by the $0.142 resistance area instead. As a result it has been moving downwards since. 

Furthermore, the MACD has given a bearish reversal signal and the RSI is decreasing, even though it is still above 50.

VET resistance
Chart By TradingView

The shorter-term six-hour chart shows that VET has broken down from an ascending support line that had been in place since July 20. This could be a sign that the short-term upward movement has ended.

If so, VET would be expected to decrease towards the closest support area at $0.1. This is the 0.5 Fib retracement support level and a horizontal support area.

VET breakdown
Chart By TradingView

Wave count

Cryptocurrency trader @24KCrypto outlined a VET chart, stating that the token has completed wave four and has now begun the fifth and final wave towards a new all-time high price.

VET count
Source: Twitter

Due to the fact that the 2-4 trendline has not been broken, the count seems to be legitimate. If correct, VET has completed a fourth wave pullback.

In the long-term, the two most likely targets for the top of wave five are at $0.34 and $0.53. The former is the projection of the length of waves 1-3 to the bottom of wave four (white), and using an external retracement on the same wave four (black). The latter is the 1.61 length of waves 1-3.  

A decrease below the July 20 low of $0.0056 would invalidate this particular wave count.

VET count
Chart By TradingView

For BeInCrypto’s latest BTC (BTC) analysis, click here.

The post VET Looks for Support After Failing to Break Out appeared first on BeInCrypto.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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