VeChain 4hr Chart Update
As usual with the massive Longs Liquidation yesterday, our beloved VeChain got hit with one of the worst drops compared to other assets, basically erasing all the gains from 31st August. More on this later.
VET is still within its upwards Pitchfork Pattern (A,B,C), it actually dropped all the way to its lower blue support line and bounced back up. VET eventually needs to make it back ABOVE the Pitchfork Median Line.
VET is below its 50EMA on this 4hr timeframe.
VET is below its 200EMA for this 4hr timeframe.
At the moment of typing this, VET has found some resistance from its Least Squares Moving Average (LSMA) Level. We need a successful 4hr candle CLOSE ABOVE this level for continued upwards momentum.
VET is way below its Bollinger Bands Middle Band Basis 20 Period SMA, we have had massive expansion of the Upper and Lower Bands but note that the Upper Band is starting to point downwards and the Lower Band is starting to curve around indicating we may see some consolidation and reduce volatility.
VET is still above the Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
VET is back above its Volume Profile Fixed Range Point of Control (VPFR POC) for the Fixed range of 10x 4hr Candles that i have selected.
We have seen increased Volume on this 4hr timeframe and note that the last 2 4hr Volume Bars have closed green and above its Volume 20 Period MA.
The Average Directional Index (ADX DI) is indicating the trend strength is strong with the ADX (Orange Line) at 45.40 above its 9 Period EMA (Black Line) which is at 40.72. Note that the +DI (Green Line) is pointing upwards at 9.94 and the -DI (Red Line) is pointing downwards at 37.29. This tells me that while Negative Momentum is strong, it has lost some momentum and Positive Momentum is starting to increase. We need the +DI (Green Line) to cross back over and ABOVE the -DI (Red Line) for renewed positive upwards momentum strength.
The Chaikin Money Flow (CMF) is indicating that VET is back in the Accumulation Zone. Note that the CMF (Green Line) is below its Least Squares Moving Average (LSMA) which shows a lack of accumulation strength. We need the CMF (Green line) to cross back ABOVE the LSMA (Blue Line) for renewed upwards momentum.
I got asked yesterday, “why does VeChain suffer the most when Binance Futures gets liquidated? is it because of weak hands?” It’s nothing to do with weak hands, from my opinion VeChain suffers because it doesn’t yet have the liquidity cushion of other exchanges like Coinbase, Bitstamp, Kraken and many other major exchanges that BTC, ETH and ADA have to help cushion any major drop, so when Binance Longs gets gutted by Binance themselves, VET suffers greatly. This is just my opinion, but it actually makes sense, so it's probably true ;-). Hopefully after the release of POA2.0, we’ll see VeChain and VTHO added onto some of other major exchanges increasing liquidity.
I hope this is helpful with your Trading and Hodl-ing.
Notes for those who don’t know:
LSMA = Black Squiggly Line on chart
50MA = Yellow Squiggly Line on Chart
200MA = Red Squiggly Line on Chart
Bollinger Bands = Green Bands on Chart
Pitchfork = A,B,C Pattern on Chart
VPVR POC = Long Horizontal Red Line on Chart
VPFR POC = Short Horizontal Red Line on Chart
Volume Bar = Bottom of Chart
Volume 20 Period MA = Orange Line Going through Volume Bars
As usual with the massive Longs Liquidation yesterday, our beloved VeChain got hit with one of the worst drops compared to other assets, basically erasing all the gains from 31st August. More on this later.
VET is still within its upwards Pitchfork Pattern (A,B,C), it actually dropped all the way to its lower blue support line and bounced back up. VET eventually needs to make it back ABOVE the Pitchfork Median Line.
VET is below its 50EMA on this 4hr timeframe.
VET is below its 200EMA for this 4hr timeframe.
At the moment of typing this, VET has found some resistance from its Least Squares Moving Average (LSMA) Level. We need a successful 4hr candle CLOSE ABOVE this level for continued upwards momentum.
VET is way below its Bollinger Bands Middle Band Basis 20 Period SMA, we have had massive expansion of the Upper and Lower Bands but note that the Upper Band is starting to point downwards and the Lower Band is starting to curve around indicating we may see some consolidation and reduce volatility.
VET is still above the Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
VET is back above its Volume Profile Fixed Range Point of Control (VPFR POC) for the Fixed range of 10x 4hr Candles that i have selected.
We have seen increased Volume on this 4hr timeframe and note that the last 2 4hr Volume Bars have closed green and above its Volume 20 Period MA.
The Average Directional Index (ADX DI) is indicating the trend strength is strong with the ADX (Orange Line) at 45.40 above its 9 Period EMA (Black Line) which is at 40.72. Note that the +DI (Green Line) is pointing upwards at 9.94 and the -DI (Red Line) is pointing downwards at 37.29. This tells me that while Negative Momentum is strong, it has lost some momentum and Positive Momentum is starting to increase. We need the +DI (Green Line) to cross back over and ABOVE the -DI (Red Line) for renewed positive upwards momentum strength.
The Chaikin Money Flow (CMF) is indicating that VET is back in the Accumulation Zone. Note that the CMF (Green Line) is below its Least Squares Moving Average (LSMA) which shows a lack of accumulation strength. We need the CMF (Green line) to cross back ABOVE the LSMA (Blue Line) for renewed upwards momentum.
I got asked yesterday, “why does VeChain suffer the most when Binance Futures gets liquidated? is it because of weak hands?” It’s nothing to do with weak hands, from my opinion VeChain suffers because it doesn’t yet have the liquidity cushion of other exchanges like Coinbase, Bitstamp, Kraken and many other major exchanges that BTC, ETH and ADA have to help cushion any major drop, so when Binance Longs gets gutted by Binance themselves, VET suffers greatly. This is just my opinion, but it actually makes sense, so it's probably true ;-). Hopefully after the release of POA2.0, we’ll see VeChain and VTHO added onto some of other major exchanges increasing liquidity.
I hope this is helpful with your Trading and Hodl-ing.
Notes for those who don’t know:
LSMA = Black Squiggly Line on chart
50MA = Yellow Squiggly Line on Chart
200MA = Red Squiggly Line on Chart
Bollinger Bands = Green Bands on Chart
Pitchfork = A,B,C Pattern on Chart
VPVR POC = Long Horizontal Red Line on Chart
VPFR POC = Short Horizontal Red Line on Chart
Volume Bar = Bottom of Chart
Volume 20 Period MA = Orange Line Going through Volume Bars