The VeChain (VET) price has likely reached its high for 2019 and has begun its corrective movement. The current upward move is close to reaching its end, after which we believe the price will continue to decrease.
The VET price increased by slightly more than 130 percent in November. After reaching a high on December 2, it has been decreasing, making us believe it is in a corrective phase.
Trader @cryptoMichNL outlined this decrease in the VeChain price, suggesting that the current support area of 80 satoshis is important in determining whether the price will move towards new highs or continue its corrective movement.
Dropdown of 30-35% since the high (which was marked by bearish divergences).
Would be interesting whether we can flip the 79-80 area for support. Then aiming for 100 again is likely.
If not, then 60-60 zone is still my main interest zone for longs. pic.twitter.com/4QyNBIRY5b
— Michaël van de Poppe (@CryptoMichNL) December 24, 2019
Will VeChain eventually increase above 100 satoshis? Keep reading below if you want to find out.
Corrective Wave
Beginning on October 26, VET began a strong upward move that caused the price to increase by 210 percent. The price movement has the similarities of a five-wave Elliott formation. Afterward, what followed was a corrective wave that reached the 70 satoshi support area. The next support areas are found at 60 and 45 satoshis.
Since then, the VET price has been increasing. We predicted this increase and stated that it is possibly the B wave in our previous analysis. Since that article deals with the creation of the Elliot pattern and why we believe the price has reached its local high, this one will be more short-term — focusing on the end of the B and C waves.
Relief Rally
As for the current upward move, the most likely reversal area is found between 88 and 92 satoshis.
It is an area that previously acted as resistance and is found between the 0.5 and 0.618 Fib levels, making it very suitable for a top.
The current rally has begun to show weakness, indicating that the top might be near. There is a bearish divergence developing in the RSI, albeit only in lower time-frames.
Future VeChain Movement
If we assume that the VET price will finish its current wave near 90 satoshis, what follows next is the C- wave.
The support area at 60 satoshis is where this movement is expected to end. The area acted as support during the upward move, is at the 0.618 Fib level and coincides with the 200-day moving average (MA), making it a very likely place for a reversal.
To conclude, we believe the VET price has reached a local high. After a possible rally towards 90 satoshis, we expect the VET price to eventually decrease to 60 and possibly 50 satoshis.
