VET seeks support after failed breakout

VeChain

(VET) has been rising since July 20 but failed to break above the $0.142 resistance level. The Sponsored

Token

has fallen below a short-term rising support line and is currently trying to find support.

VET is trying to break out

VET has been moving up since July 20 when it hit a low of $0.056. The upward movement continued until August 16, after which the token

managed to peak at $0.144. Sponsored Sponsored

However, it failed to break out and instead was rejected by the $0.142 resistance area. As a result, it has been falling ever since.

Moreover, the MACD

has

given a bearish reversal signal and the RSI

is falling, although it is still above 50. VET seeks support after failed breakoutVET seeks support after failed breakoutChart by TradingView

The shorter-term six-hour chart shows that VET has broken out of the rising support line that has existed since July 20. This could mean that the short-term upward move has ended.

If so, VET is expected to fall towards the nearest support area at $0.1. This is the Fib 0.5 support level and also a horizontal support area.

VET seeks support after failed breakoutVET seeks support after failed breakoutChart by TradingView

Number of waves

Cryptocurrencytrader @24KCrypto

presented a chart of VET, claiming that the token has completed wave four and has now started the fifth and final wave towards a new ATH. <img alt=” src=”image/svg+xml;base64,PHN2ZyBoZWlnaHQ9Jzg0MCcgd2lkdGg9JzE2MjUnIHhtbG5zPSdodHRwOi8vd3d3LnczLm9yZy8yMDAwL3N2ZycgdmVyc2lvbj0nMS4xJy8+” />VET seeks support after failed breakoutSource: Twitter

Given that the 2-4 trendline has not been broken, the count seems reasonable. If correct, VET has completed the pullback from the fourth wave.

Longer term, the two most likely targets for the top of the fifth wave are $0.34 and $0.53. The former is a projection of wave lengths 1-3 on the bottom of the fourth wave (white) and using the outer retracement on the same fourth wave (black). The latter is 1.61 of wave length 1-3.

A drop below the July 20 low of $0.0056 would invalidate this particular wave count.

VET seeks support after failed breakoutVET seeks support after failed breakoutChart by TradingView

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