Hey folks hope you are well and welcome to the new update on Vechain coin. As the VET coin has surged more than 450% therefore in today's article we will try to understand how this coin completed the bullish setup before this powerful bullish rally and what it can do next.
Breakout from down channel:
The price action of Vechain was moving in a down channel since November 2019. If we see the volume profile indicator then it can be easily observed that we had that trader’s interest up to 0.00000076 btc and from the downside we had the trader’s interest up to 0.00000076 btc. And if we watch the moon phase indicator then we have several full moons above the resistance of the channel with high altitude and the dark moons nearby the support or at the support of the channel. That was another clear indication that the price action can breakout the resistance at any time and it would be difficult for the priceline to cross down the level of dark moons. In the month of May 2020 the price action finally turned strong bullish and produced more than 450% bullish rally and broke out the resistance of the channel:
Breakout from the long term chart’s channel:
If we switch to the weekly chart then the price action was moving in another channel on this long term chart. The priceline also broke out the resistance of this channel and during this bullish move the price action also broke out the 25, 50 and 100 simple moving averages on the weekly chart. Now the 25 and 50 moving averages are moving up to form the bull cross with 100 simple moving average that will be another bullish signal and that can produce another powerful rally.
The Ichimoku cloud on the long term chart has turned bullish:
Now if we placed the Ichimoku cloud on the weekly chart then it can be easily observed that the price action has broken out the bearish cloud. The conversion line and the baseline formed bull cross just beneath the candlesticks and the lagging span of the Ichimoku cloud has also crossed up the bearish cloud. After all these bullish signals eventually the cloud has also turned bullish.
If we switch to the small-time period 4-hour chart then we can see that the priceline is continuously forming different bull flags. Recently the priceline has formed another bull flag that was in fact a descending triangle. But Yesterday the pipeline of Vechain has broken down the support of this triangle.
Now it is also breaking down the 100 simple moving average support on this 4-hour chart. If this support will be completely broken down then the price action may move more down to re-test the 25 and 50 simple moving averages on the daily chart.
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Conclusion:
Even though the price action of Vechain is very strong bullish but it is at the very high distance from the different moving averages on the daily and the weekly chart as well. Therefore this correction rally that is likely to be started was needed before any further upward move.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
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