Bitcoin’s move above $42K was a much-needed blessing for the broader market after most altcoins observed a bearish second week of January. The likes of VeChain stood to benefit from the spike in trading inflows and quickly copped up a near 20% increase between 11-13 January. However, bulls took a more cautious tone as the weekend approached. VET pared some gains and was back within a bearish-near term narrative due to its ongoing chain of lower highs.
VeChain Daily Timeframe
Despite the latest spike, VeChain was unable to break its streak of lower highs which engulfed the market since 9 November 2021. This notion reflected perfectly on VET’s daily chart after bears rejected a close above the 23.6% Fibonacci and daily 20-SMA (red) – forming yet another lower high in the process.
As investors questioned when VET will embark on its next bull run, few price levels came forth with a logical answer. Recently, the region between $0.074-$0.069 was transforming into a reliable defense. Two rallies have resulted from this demand zone so far – a 30% surge between 15-27 December and the abovementioned 20% jump from $0.069 to $0.082.
However, weak displays on the MACD and Awesome Oscillator meant that bulls were not out of the woods just yet. VET’s demand zone could be called into action over the coming week and it would be interesting to see if buyers can keep defending more bearish pressure. Any double bottom or triple bottom setups would assist buyers with a recovery. However, expect a 19% spillage should VET close below $0.069. In such a case, buyers would have redirected their efforts between $0.060-$0.055.
Indicators
There were hardly any positive takeaways from VET’s daily indicators. The daily MACD and Awesome Oscillator continued to hold ground within bearish territories. The dearth of any buy signals would likely discourage new longs until VET tags its immediate demand zone.
Conclusion
Caution must be maintained while trading in VET tokens and short positions would be preferred over long setups. Observers can wait to see how the market will react once VET tags a support zone between $0.074-$0.069. Safer long bets can be placed once VET captures ground above an earlier swing high at $0.095.