VeChain registered a 5% intraday decline after failing to surpass the 50 day EMA. The derivatives data shows a weaker interest in the market, increasing the likelihood of a breakdown at $0.02199.
The broader market is struggling to find support. VeChain The 50-day EMA takes a turn to the downside, and a sudden surge of selling pressure threatens to undermine weekly gains. The downtrend will it break below the critical $0.02199 resistance?
Vechain Price Analysis
VeChain’s daily chart shows that it has recovered from the crash of the last three days. Five consecutive bullish candlesticks were produced by the bullish trend.
In the rally of recovery, there were five bullish consecutive candles. The price increased from $0.00223 to $0.002630. That’s a 16 percent surge. The uptrend, however, failed to surpass the 50-day EMA resulting in a sudden 4.87% drop on Wednesday.
A recent increase in volatility has caused the MACD to flatten, even though the crossover was positive. The technical indicators are therefore giving mixed signals despite the increased volatility of VET prices. Noteworthy, the downward trend seen in the 50-100-200-day EMAs indicates a long-term bearish outlook.
Altcoins are breaking below support levels of $0.02471 due to renewed selling pressure. VeChain’s losses were extended with an intraday decline of 5.17%, trading at $0.02222. VET is more likely to test the $0.02199 horizontal resistance.
If the price closes below $0.02471, the decline could continue to $0.02000 and then $0.01974. If VET does not close below $0.02471, a possible bounce to the 50 day EMA of $0.02609 is still possible..
VET Derivatives
VeChain’s new bearish trend has a negative impact on the market for derivatives. The open interest fell by 9.48%, to $62,85 million. This indicates a reduced interest from traders.
Short liquidations were below $6k. Long liquidations totaled $419k. The bullish traders have been wiped out. In turn, the ratio of long to short positions dropped to 0.8744, indicating an increase in bearish position.
Data on derivatives suggest that a continued downward trend is likely due to the decline in trader’s interest.
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Source: thecryptobasic.com
