VeChain (VET) is a smart contract platform geared towards supply chain management and distribution.
The project grew its roots on the Ethereum (ETH) blockchain, where it launched an initial coin offering (ICO) in August and September of 2017 under the ticker symbol VEN.
VeChain’s mainnet launched at the end of June of this year when the ERC20 based tokens were swapped for the VET native blockchain tokens. After the VET token hit the market, it peaked at $0.026 before taking two huge nosedives in the second half of the year to a new low of $0.0039, at the time of writing.
VeChain is currently ranked 23rd with a total market cap of $213 million.
A look over the three-day and two-week stochastic RSI chart shows VET hovering slightly above the midline between 60 and 70.
Historically, VET has always returned to the low range following a bounce off of the top resistance. VET does appear, however, to be making a turnaround and will most likely return to the overbought territory between 80 and 100.
Embrace The Bounce
VET has fallen back creating a wide-ranged descending triangle, establishing a top resistance level and bottom support level.
The daily chart below shows the resistance line was tested at the beginning of November which led to a 66 percent dump back down to the support at $0.004. A solid bounce could send VET aiming first for the 0.236 Fibonacci level at $0.0057.
In the previous bounce off the descending support, VET returned back to the Fibonacci level of 0.618 before hitting resistance. A similar situation this time around is unlikely, but in a good case, VET might be able to reach the 0.5 level before meeting much resistance.
[bctt tweet=”VeChain (VET) is looking primed for a bounce as it explores new low levels.” username=”beincrypto”]
Traders should be aware that VET has just recently hit an all-time low, and it can not be 100 percent guaranteed that the price will not continue to move down to test lower supports.
Do you think VET will make a comeback in 2019? Will VET continue to see new lows before a reversal happens? Let us know your thoughts in the comments below!
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold VET.