The supply chain crypto VeChain (VET) has been making a comeback in the last month, along with a few other mid-cap altcoins, after bottoming out during September. VET has already done a 200% run on the Bitcoin chart, and is now trying to punch its way through a critical inflection level – but so far, it looks unlikely to do this.
Starting with the 3-day VET/BTC chart (VET had a rebrand in 2018, so this is not exactly the full chart), we see that the altcoin has so far been rejected near the critical level above 100 satoshis. If the VET uptrend is to continue, this level will have to be taken out with good conviction.
Zooming into this area a bit more, to the daily, we see that there are few signs that this is likely to happen. First of all, we see a prominent bearish divergence between the price highs. The histogram is also taking a beating, expanding hard to the downside.
What’s more, the 21 EMA looks ready to give way; but we can’t call this until the daily candle closes, which is not for several hours. If it does close above, we are fairly likely to see another bounce back up to the 100 satoshi area. There is a counter-argument here, which is that the volume spikes on the respective price peaks are higher; there was thus no flagging in volume during the price runup.
Finally, on the daily VET/USDT, we see nearly the same chart, but instead taking the form of a double top. Here, the 21 EMA is really in trouble, although the breach is on quite low volume and could perhaps end up holding.
Again, the histogram has taken a violent expansion to the downside. From here, it would seem prudent to wait for a test and hold of the 55 EMA.
Several mid-cap altcoins have surged and ebbed in the past weeks. MATIC has been brutally rejected today, putting a likely end to its uptrend. We should be on the lookout to see if the wave of surges spreads to other coins, or just ends.
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