After a shocking 13% drop in price in the past few hours, VeChain (VEN) has slightly improved by rising to $1.81 USD in the last 24 hours. The technical charts are however showing a reversal in price on the 15 minutes VEN/USDT pair, representing a proxy for the USD pair. The continued hike in price is mainly due to the overall bullish stance in the market and the recent developments seen on the blockchain by the VeChain Foundation. The launch of the VeChain THOR network has also brought about accolades and serious attention from the media.
VEN has recently surpassed the billion dollar mark and raised above the 20th position on the largest market capitalization rankings. The token currently has a total market capitalization of $1,002,684,798 USD and ranks 19th on the charts. The token crossed below the $1 billion mark for the first time since January last week.
VEN/USD Technical analysis – July 2018
The VEN/USD pair is on an uptrend after VeChain (VEN) bullish momentum in the last few hours. At the peak of the uptrend, an evening star is forming. The price reached a new resistance level at $1.8695 USD after crossing the $1.75 USD support. The reversal in price is imminent on the formation of the top abandoned baby. This gives an opportunity to sell the pair at the close price of $1.8300 USD and target the new support levels at $1.7600 giving a total profit of 700 pips. The push in price is coming in a bullish market that has seen the price of Bitcoin soar to levels above $7500 in the past week.
The volumes traded on VEN/USDT pair have also been increasing in the last few hours with the overall market in a buying spree. The total volume of over 400 million USD worth of VEN traded in the past day, the price reversal is on track.
Relative Strength Index (RSI)
The relative strength index is oscillating at levels above the average levels band. The pair has in the past day oscillated at high buying levels and has since crossed the overbought band at 75.62 showing a possibility of a price reversal coming. The buyer’s momentum is slowly beginning to fade as the strength of bears in the market increases in the last 30 minutes.
The Bollinger bands seem to have contracted at the end of the uptrend showing a low volatility compared to the 21 day simple moving average. The cross in price at the abandoned baby candlestick shows the oversold nature of the market and may well lead to an upcoming bear run. The low volatility will expand away from the SMA20 as price stabilizes towards the middle line.
The upcoming bearish trend will depend on the overall stance of the market dominated by BTC at over 40%. VeChain (VEN) market capitalization crossing above the billion dollar mark and the 10% increase in price offers a positive psychological impact to the investors of VEN.