As part of the requests thread on Twitter, here is a VeChain price analysis for you all to sink your teeth into.
For the purposes of this analysis, we will be looking at the VETUSDT chart on Binance (because it has the most price data).
Unfortunately, the Bitcoin data available at our disposal is currently very limited. So, we’ll have to go off of what we got and attempt to make some inferences about the price in the short-term.
VeChain Price Analysis
We can ascertain that, at the very least, the price of VeChain against $BTC has been on a steady downtrend since at least July on the daily chart, and it has been holding up.
We’re a bit limited in terms of the inferences that we’re able to make about the price on the daily, beyond this point, but let’s scroll in a bit more to get a better idea of where the downtrend resistance currently rests at.
Downtrend Resistance For VeChain on the Daily
As we can see from the photo above, the downtrend resistance is hovering just a little bit above where the current price is at (approximately 174 sats).
In fact, we could consider the longer wick on the daily candle that popped up today (October 28th, 2018), to be indicative of some waning buy power on the protocol (that’s typically what long wicks mean).
Moving Fibonacci Indicator #VeChain
This indicator does exactly what you would expect to do. You simply hit the button and it applies the Fibonacci indicator over the current price chart with a pre-defined lookback period of your choosing (tracking from the high to the low on the chart is already programmed for you via formula in the code; code = protected).
Let’s Scroll to the H4 (4-Hour) Chart to Get A Better Look at Micro-Movements
Zerononcense Reversion Ribbon V2
Check out the signals that our ZN Reversion Ribbon V2 is giving us.
In the chart above, we can see that the indicator is actually showing us that we should be watching out for an impending price drop for two reasons:
A) The candles at the end of this chart are light green
B) The Histogram on this chart is starting to head downward, which is a major signal that the buy pressure is waning because the two moving average indicators on the chart are starting to converge together.
What’s described in ‘B’, can be seen above.
So, that’s a major bearish indicator on the H4.
Let’s see what the RSI is telling us now
Relative Strength Index(14) for VeChain on the H4
So, as we can see above, the RSI(14) on the H4 has been fairly neutral in terms of the signals that it’s giving us.
Right now, we can’t see any definitive (justifiable) reason to say that there is an uptrend or a downtrend in the price momentum that can be spotted on the H4.
There is also no divergence in the price action either (in other words, the signal line for the RSI(14) is matching the price action on the chart).
Balance of Power RSI for VeChain on the H4
Curiously, we do see a little bit of divergence in the Balance of Power RSI indicator (custom made by Zerononcense brand).
For those that are unaware, this indicator is designed to track underlying buy and sell volume. Thus, when the indicator is heading up, that means that there are increasing ‘buys’ on the protocol and when the indicator goes down, that means that there are increasing ‘sells’ on the protocol.
Thus, according to the chart above, we can see that there has been a steady rise in accumulation of VeChain since October 27th, on the H4 (which isn’t that long, but still, it’s a few periods and the buy pressure is pretty sharp).
However, it appears that this price action has already been accounted for:
As we can see from the chart above, so far the buy pressure on $VET is decreasing as well.
Since there aren’t really any ‘short options’ for $VET (that the author is aware of), one cannot really advocate for a short on this token.
However, what the author can say, is that they feel bearish about the potential future price action of $VET because of the analysis conducted in this piece.
Thus, if it were up to the author, they would personally refrain from entering a position on this coin altogether until the indicators and other signs of life on the protocol begin to take effect.
Disclaimer: This is not financial advice and the author is not invested in $VET, nor any of its competitors.