Daily Price Action

VETUSD Bottom in Place?


I’ve been talking about VETUSD since June 26th.

VET, the native token of the VeChainThor blockchain, is a cryptocurrency with tremendous potential as cryptos enter a new cyclical bull market.

We saw some of that potential unfold between May and July when VET rallied 440%.

However, since reaching a local high of $0.0229 on August 9th, VETUSD has pulled back.

That’s perfectly normal and healthy.

So far, VETUSD has pulled back to the 61.8% Fibonacci level of the March to August range.

The pair has also recently started to carve a descending channel.

VETUSDT daily chart showing descending channel
VETUSDT daily time frame

Those familiar with the way I analyze a market will recognize this as a downward sloping flag.

Similar to a falling wedge, the structure above hints at exhaustion from sellers.

But as of this post, VETUSD is holding below channel resistance near $0.0118.

And as I mentioned last weekend, ideally, VET needs to secure a weekly close above the $0.0121 area to confirm the breakout.

In addition to the channel above, VeChain’s token is also forming a potential inverse head and shoulders on the 4-hour time frame.

The pattern below hints at a move to $0.0150 if confirmed.

The one thing that’s still missing is an increase in volume.

So, if VETUSD does manage to take out the levels discussed above, I’d like to see a simultaneous ramp in volume.

All of that said, I continue to like the token much higher over the next 16 months.

Disclosure: I hold a VETUSD long position.

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VETUSDT 4-hour chart showing inverse head and shoulders
VETUSDT 4-hour time frame

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Justin Bennett says

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