VET price dropped as much as 22% in crypto market correction witnessed on October 28.
VeChain is likely to drop another 34% to $0.0825 before restarting the uptrend.
The VET price dropped 11% from $0.14033 to $0.12364 in a crypto market dip witnessed on Wednesday October 27. VeChain lost as much as 22.8% from a high of $0.15177 on October 26 to yesterday’s intra-day low around $0.11711. VeChain’s technical pattern hints at further losses.
VET Could Risks Losing 34% of its value
The VeChain price has been on an uptrend rising a massive 82% from $0.08255 on September 30 to hit a high of $0.15086 on October 25. During this rally, the VET price has spelt out an ascending parallel channel chart pattern on the daily chart. This chart pattern is formed when an asset makes a series of higher highs and higher lows over an extended period of time.
At the time of writing VeChain price trades within the confines of the rising channel at $0.12586. It sits on strong support around $0.11855 where the 200-day Simple Moving Average (SMA) coincide with the lower boundary of the prevailing chart pattern.
Note that a slip below this crucial level could see the asset slide below the rising channel to tag the 50- and 100-day SMAs at $0.11947 and $0.11855 respectively.
Increased selling pressure could see the VeChain price tank below the 0.10 psychological level towards the demand zone ranging from $0.08255 and $0.09540. This would represent up to 34% drop from the current price.
The sharp movement of the Relative Strength Index (RSI) Indicator away from the overbought zone validates VeChain’s bearish outlook.
On the upside, if VET price bulls push a decisive daily close at or above $0.130 psychological level, it will signal the buyers are back in town. A confirmation of a bullish breakout can be obtained if VeChain produces a daily close above $0.140 above the middle boundary of the ascending parallel channel.
If that happens, investors can expect this bullish momentum and other positive fundamentals to push the VET price towards the channel’s top point at $0.16204.