VeChain (VET) continues to trade around a major support level, but is the bearish sentiment about to turn bullish?
VET/USD: Daily
VeChain, the value transfer token for the VeChain blockchain network, has been down in the dumps with the rest of the crypto space since November, falling from a swing high just under $0.19 to December lows around $0.075 (a -60% drop)!
VeChain (VET/USD) Daily Crypto Chart
This area roughly between $0.07 – $0.09 is a major support area that’s been the jump-off point for several bull rallies in VET/USD’s past, so it’s arguable that crypto traders are looking at this area once again for a bullish reversal, especially with a bullish divergence pattern currently playing out on the daily chart above.
So, will we see another swing move to the upside VET/USD? It looks like that might be the case with today’s pop higher of around +10% on the session, likely a reaction to recent news that VeChain will bring its own stablecoin to the VeChain network.
Happy to announce that $VeUSD, #VeChainThor‘s first native #StableCoin, will soon go live!
Users & enterprises will be able to easily create/burn fully backed USD-based stablecoins, opening #VeChain up to #DeFi, #web3 and novel real world use cases.
https://t.co/Nt4yBWJtKc pic.twitter.com/OH7BAa59KK— VeChain Foundation (@vechainofficial) January 4, 2022
Is this news really enough to get the bulls going? Of course we won’t know until we know, but the narrative of being a fully backed, regulated and audited stablecoin could be enough to draw in both investors and potential users of the network to VET.
And with the chart setup above of a potential stop below recent swing lows and target at previous swing highs, there is a very attractive range of potential reward-to-risk ratios that could draw in smaller players as well for short-term or medium-term swing plays.
All combined, the odds are pretty good that a bullish move is in the cards if broad crypto sentiment does lean positive, and we’ll be watching for a retest of that $0.08 handle before considering a potential long swing position with a great potential return-on-risk.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.