Hello traders! Today we will observe VeChain Chinese cryptocurrency. It aims to solve the problem of tracking goods across the world. The company wants to allow manufacturers to track products though added sensors, where all the information on the product is stored on the blockchain.
This means that either a buyer or a seller can track where are the product, where and went it was sold and all other related information. This could solve piracy issues and increase trust between manufacturers and consumers.
We all know that China is a leading manufacturer in the world, and they distribute their goods across the entire globe. This makes VeChain coin one of the most attractive real use-case cryptocurrencies.
Currently, VET is ranked #36 on the coin market cap, but if VeChain will succeed, it will get much higher market capitalization in the medium to long term.
For now, let’s just look at the Daily chart and see what we can expect in the coming days or weeks from the VET/USDT price.
Fibonacci applied to the last impulsive wave down shows that on the corrective move up, price rejected 50% Fibonacci retracement level. It was a very clean bounce suggesting that price is not ready yet to go higher.
VET/USDT remains below the Fibonacci resistance, 50 Exponential Moving Average as well as the downtrend trendline. Currently, VeChain is trading within the ascending channel and as long as it is not broken in either direction, there won’t be any strong moves.
On the hourly chart below, we have applied the Fibonacci retracement level to the uptrend trendline breakout. The 50% retracement level is placed at the breakout and we can see that today 78.6% retracement at 0.00323 was rejected. This might result in a wave down, towards the previous low formed on March 30. To be more precise, VET/USDT is expected to hit the 23.6% Fibs at 0.00267 before/if the uptrend will begin.
On the upside, if there will be 1h and 4h close above the 0.00323 resistance, the bearish forecast will be invalidated. In this scenario, VeChain can, in fact, break above the ascending channel and confirm a strong uptrend.
Bias: Bearish while below $0.00323
Potential Resistance Zone: $0.00350- 0.00330
Potential Targets: $0.00267
Have a profitable trading!