Home
News
Bitcoin (BTC) reached an all-time high of $68,000 earlier this month, though its recent plunge from its $66,000 market price has prompted a correction across the board. This resulted in the total crypto market cap dipping by almost 8% in the past 24 hours as it settled to $2.63 trillion. Meanwhile, the blockchain application platform of VeChain (VET) endured a similar fate to that of bitcoin as it got trimmed down by almost 9% compared to the previous closing.
VeChain early recovery
Nonetheless, the possibility of an early recovery goes down from an oversold hourly Relative Strength Index (RSI) alongside a lengthy bottom trendline that worked as a sort of backup. Further, should VeChain now close on top of the convergence of its simple moving averages of 20, 50, and 200, a new high can be aimed at around $0.188.
VeChain has paved the way for recovery after tagging a bottom trendline that has not been tipped over since late September of this year. Additionally, the hourly RSI was earlier indicative of life following a rebound from the oversold zone. It is said that a 6% growth would send VeChain to its 20-SMA which is in the red, 50-SMA, and 200-SMA in green. Further, moving past such convergence would enable a fresh high to be established at the upper trendline amounting to $0.187.
Meanwhile, VeChain is likely to trim its losses at the 38.2% Fibonacci level provided that sellers press the price further down the lower trendline. Additionally, a 61.8% Fibonacci alongside a $0.116 defensive line can put forward extra support given that the broader market sell-off carries on with the driving of VeChain’s price.
Reason behind it
This is because VeChain’s RSI recovered from the oversold area and paved the way leading to its 50 resistance. Further, it may well seem that VeChain has some positive interaction every time the hourly RSI marks this bottom part. Additionally, the hourly moving average convergence/divergence was already near to a bullish crossover while the so-called “Awesome Oscillator” has shown green bars in succession.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
