VeChain 1h shows a trading scenario where the price is interacting with significant levels identified by Smart Money Concepts, specifically with a bearish fair value gap (FVG) indicated by the red zone. The bearish FVG is a region where the price previously dropped sharply, suggesting a lack of fair value as perceived by the market, and it typically acts as a resistance area when approached from below.
Currently, the price is consolidating around the 0.382 Fibonacci retracement level at approximately $0.0462, with the FVG looming above as potential resistance near the $0.0480 level. The RSI is hovering around the neutral 50 mark, indicating a balance between buying and selling pressures. The MACD is below the zero line, signaling bearish momentum, but the converging lines could imply a weakening of this momentum or potential reversal if they cross upwards.
Traders using Smart Money Concepts might anticipate that if the price reaches into the bearish FVG and rejects, it could confirm the presence of strong sellers in that area, potentially leading to another leg down. Conversely, if the price were to breach the FVG, it could indicate a shift in market sentiment and a possible change in the dominant trend.
Watching how the price reacts to these Smart Money indicators, alongside other technical elements like Fibonacci levels, RSI, and MACD, can provide insights into near-term directional biases and potential breakout or breakdown points.
Currently, the price is consolidating around the 0.382 Fibonacci retracement level at approximately $0.0462, with the FVG looming above as potential resistance near the $0.0480 level. The RSI is hovering around the neutral 50 mark, indicating a balance between buying and selling pressures. The MACD is below the zero line, signaling bearish momentum, but the converging lines could imply a weakening of this momentum or potential reversal if they cross upwards.
Traders using Smart Money Concepts might anticipate that if the price reaches into the bearish FVG and rejects, it could confirm the presence of strong sellers in that area, potentially leading to another leg down. Conversely, if the price were to breach the FVG, it could indicate a shift in market sentiment and a possible change in the dominant trend.
Watching how the price reacts to these Smart Money indicators, alongside other technical elements like Fibonacci levels, RSI, and MACD, can provide insights into near-term directional biases and potential breakout or breakdown points.
