2019-12-4 11:15 |
The VeChain price has increased by 250 percent since Oct 26. It is currently inside a significant resistance area, and a period of retracement seems likely before the price continues its upward movement.
One reason for this price increase could be the announcement for the release of ‘The Way of the Tiger.’ This was a book series from the 1980s, which is scheduled to be the first role-playing collectible card game that will run on the VeChain blockchain.
Full-time Bitcoin margin trader @traderescobar stated that for VeChain, one target remains at 200 satoshis and predicts the price will undergo a massive parabolic surge in December in order to reach it.
Let’s dig deeper and see if this movement is likely to take place.
Massive VeChain RallyThe VeChain price reached a low of 36 satoshis on Oct 24 and began a rally afterward. It has increased by 170%, reaching a high of 109 satoshis with virtually no retracement.
The price is following a very steep ascending support line. Since Nov 14, it retraced along a descending resistance line, but the price broke out at the beginning of December. The breakout occurred with a very strong volume.
Currently, the price is trading inside the 100-105 satoshi resistance area.
Retracement PossibilityBoth the RSI and MACD have been generating strong bearish divergences. A divergence this pronounced inside a resistance area often indicates a reversal. However, the increased volume discussed in the previous section raises some doubts.
Furthermore, a bullish cross has transpired between the 50 and 200-day moving averages (MA). This often suggests that an uptrend has begun.
Due to the steepness of the ascending support line and the position of the MAs, a retracement towards 70 satoshis followed by a gradual uptrend seems like a more sustainable movement.
Looking at lower time-frames, the first support area is found at 90 satoshis, having previously acted as resistance on three occasions. If the price wants to continue moving upward, it should validate this level again as support. The support area coincides with the ascending support line on December 9.
On the other hand, if the price breaks down, the first support area is found at 75 satoshis. This would coincide with the 50 and 200-day MAs.
To conclude, the VET price has reached a significant resistance area. While the upward move still has strength, a period of retracement followed by a more gradual increase seems likely.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView.
The post VeChain To Reach 200 Satoshis This Month, Predicts Analyst appeared first on BeInCrypto.
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