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Vechain Breaks out After Completing Its Correction [Premium Analysis]

2 mins
Updated by Max Moeller
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The Vechain (VET) price completed an A-B-C correction at the 65 satoshi support area. The price broke out from its pattern on January 17, confirming that it has completed its correction.

Vechain Highlights

  • The price completed an A-B-C correction.
  • It broke out from a descending wedge.
  • There is support at 65 satoshis.
Well-known trader Nico (@CryptoNTez) stated that the VET price has found support above 66 satoshis and has been trading near that level without significant volatility for the past two weeks. If the price shows signs of moving upwards, he wants to initiate a long trade with the first target being at 81 satoshis. Will the VET price reach the target? If so, when? Keep reading below if you are interested in finding out.

Elliott Wave

Beginning on October 27, 2019, the VET price reached a low of 35 satoshis and initiated an upward move that eventually took it to a high of 110 satoshis on December 2. The movement transpired in five waves, three upward and two downward, closely resembling a five-wave Elliott formation. Afterward, it completed an A-B-C correction that took it to the 65 satoshi support area. VET Elliott Wave Looking closer at the correction, we can see two long upper wicks as soon as the price reached the support area. Furthermore, the correction took the form of a descending wedge. The Vechain price broke out from a descending wedge on January 17 . We successfully predicted this breakout in our previous analysis. Since then, it has returned to validate the resistance line of the wedge. VET Wedge

Possible Setups

As for the future movement, the price is likely to move towards the 0.382 and 0.5 fib levels of the decrease at 77 and 82 satoshis. However, we are not discounting the possibility that the price initially decreases to the support area at 65 satoshis before resuming its upward movement. Vechain Future Movement Entering a long trade at the current price level near 69 satoshis and a target of 81 sats only gives a 1.2 R:R ratio with a stop loss of 59 sats. Waiting for the price to decrease to the support area of 65 satoshis would give you a 3.4 R:R with the same stop loss placement, making it a much more enticing setup. This is not to say that the price cannot go past 81 satoshis. However, there are no other signs that point to an increase besides the breakout, which in itself is not sufficient in predicting such an upward movement. Vechain R:R To conclude, the VET price has likely finished an A-B-C correction near the 65 satoshi support area. We believe it will soon begin an upward move towards 81 satoshis and possibly the top of the wedge at 110 satoshis.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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