VET/USDVeChain Update
VeChain had broke out of its previous Falling Wedge Pattern but is still in a downwards channel.
VeChain failed 4x to close above its sideways Pitchfork Median Line (A,B,C).
VeChain has closed below its Least Squares Moving Average (LSMA) on this 1 day timeframe. Note that a close below the LSMA is considered a sell signal.
At the moment, VeChain has found support from its Bollinger Bands Middle Band Basis 20 Period SMA. A close below the BB Basis and re-test as resistance will be further confirmation of continued downwards momentum on this 1 day timeframe.
Note that VeChain is still below its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 10x daily candles that i have selected.
Note that VeChain is still below its Volume Profile Visible Range Point of Control (VPVR POC) fro this charts visible range.
Volume is still low on this Binance chart and the last 4x daily Volume Bars have closed below its Volume 20 Period MA.
I have added some areas of potential support as highlighted by the horizontal Black Lines with Yellow Shading.
Looking at the Average Directional Index (ADX DI) we can see that Negative Momentum has overtaken Positive Momentum on this 1 day timeframe because the -DI (Red Line) has crossed back above the +DI (Green Line). The -DI (Red Line) has risen to 22.81 and the +DI (Green Line) has dropped to 18.72. The trend strength is weakening with the ADX (Orange Line) dropping to 24.14 an it is still below its 9 Period EMA (Black Line) which is at 28.46 and is a further sign of weakening trend strength.
Looking at the Elders Force Index (EFI) we can see that the bulls have lost a lot of strength but is sideways at the moment, note that the EFI Line (Red Line) is still above the 0 Base Line. Note that the EFI Line (Red Line) has dropped below its 9 Period EMA (Cyan Line) which is a further sign of weakening bull strength. If the EFI (Red Line) crosses below the 0 Base Line then that means that the Bears have taken full control on this 1 day timeframe.
Looking at the STOCHASIC indicator (STOCH) we can see that momentum is downwards at the moment and note that the %K Line (Blue Line) is still below its %D Line (Orange Line). Note that the %K Line (Blue Line) is indicating that VeChain still has room to drop before becoming Oversold on this 1d timeframe.
Looking at the Moving Average Convergence Divergence (MACD), we can see that the MACD Line (Blue Line) is point downwards and is still under the 0.0 Base Line in the Negative Zone. The MACD Line (Blue LIne) is still above its Signal Line (Orange Line) so we need to keep an eye on this as if the MACD Line (Blue Line) crosses back below the Signal Line (Orange Line), as this will be a sell signal for this indicator on this 1 day timeframe.
There are a few things to look out for if you are uncertain if or when to go long, be on the lookout for a successful daily close above the LSMA, the Bollinger Bands Middle Band Basis and The Pitchfork Median Line as well as keeping an eye out for any successful retest of those levels as support. With any rise, you need to also keep an eye on the volume as ideally you want any sustainable rise to be supported by increasing volume strength. Also be on the lookout for if/when VeChain crosses back above the upper descending trend-line of the descending channel as well as any successful retest of that previous resistance as support.
So at the moment, it looks like there will be some really good opportunities coming up to acquire more VeChain or your crypto of choice at a much cheaper price.
I hope this is helpful with your trading and hodl-ing.
